Marathon Bancorp, Inc. /MD/

Previous wording

Changes in the Wisconsin unemployment rate, the Wisconsin annual housing price index and the Wisconsin annual gross domestic product could have a material impact on the model’s estimation of the allowance for credit losses. Marathon Bank’s methodology for maintaining its allowance for credit losses includes various levels within each of the aforementioned criteria. Set forth below is a hypothetical change to the next level within Marathon Bank’s allowance calculation. Changing these levels as of September 30, 2025, from those actually used on September 30, 2025 to the next highest or lowest level resulted in an increase in Marathon Bank’s allowance for credit losses of $108,000, or 6.3%.

Current wording

Changes in the Wisconsin unemployment rate, the Wisconsin annual housing price index and the Wisconsin annual gross domestic product could have a material impact on the model’s estimation of the allowance for credit losses. Marathon Bank’s methodology for maintaining its allowance for credit losses includes various levels within each of the aforementioned criteria. Set forth below is a hypothetical change to the next level within Marathon Bank’s allowance calculation. Changing these levels as of December 31, 2025, from those actually used on December 31, 2025 to the next highest or lowest level resulted in an increase in Marathon Bank’s allowance for credit losses of $182,000, or 10.9%.

Previous wording

Total Assets. Total assets increased $7.2 million, or 3.0%, to $246.0 million at September 30, 2025 from $238.8 million at June 30, 2025. The increase was primarily due to an increase in loans, net of $5.5 million, or 2.7% and an increase in cash and cash equivalents of $1.1 million, or 7.5%. The remaining asset categories showed no significant changes when comparing September 30, 2025 with June 30, 2025 with the exception of interest earning deposits in other financial institutions which increased by $581,000, or 244.9% due to the reasons discussed in the following section under Cash and Cash Equivalents.

Current wording

Total Assets. Total assets increased $9.2 million, or 3.8%, to $248.0 million at December 31, 2025, from $238.8 million at June 30, 2025. The increase was primarily due to an increase in loans, net of $11.1 million, or 5.5%, which was offset by decreases in debt securities available for sale and cash and cash equivalents of $1.1 million and $728,000, respectively. The remaining asset categories showed no significant changes when comparing December 31, 2025 with June 30, 2025.

Previous wording

Cash and Cash Equivalents. Total cash and cash equivalents increased $1.1 million, or 7.5%, to $15.5 million at September 30, 2025 from $14.4 million at June 30, 2025, primarily due to an increase in deposits of $6.5 million, or 4.2% which was offset by an increase in loans of $5.5 million, or 2.7%.

Current wording

Cash and Cash Equivalents. Total cash and cash equivalents decreased $728,000, or 5.1%, to $13.7 million at December 31, 2025, from $14.4 million at June 30, 2025, primarily due to an increase in loans, net of $11.1 million, or 5.5%. This increase was primarily offset by new borrowings of $4.0 million, or 26.7%, an increase in deposits of $3.1 million, or 1.8%, and a decrease in debt securities available for sale of $1.1 million, or 21.9%.

Previous wording

Loans. Gross loans increased $5.5 million, or 2.7%, to $208.0 million at September 30, 2025 from $202.5 million at June 30, 2025. The increase was primarily due to an increase in multi-family real estate loans of $2.9 million, or 6.1% and an increase in one-to-four-family residential loans of $2.6 million, or 4.6%. The increase in multi-family real estate loans and one-to-four-family residential loans was due to a strategic decision to grow both of these portfolios. The remaining categories of loans showed no substantial changes.

Current wording

Loans. Gross loans increased $11.1 million, or 5.5%, to $213.7 million at December 31, 2025, from $202.6 million at June 30, 2025. The increase was primarily due to an increase in one-to-four-family residential loans of $7.7 million, or 13.6%, and an increase in multi-family real estate loans of $3.9 million, or 8.1%. The increase in multi-family real estate loans and one-to-four-family residential loans was due to a strategic decision to grow both of these portfolios. The remaining categories of loans showed no substantial changes.

Previous wording

Deposits. Total deposits increased by $6.5 million, or 3.7%, to $181.7 million at September 30, 2025 from $175.2 million at June 30, 2025 primarily due to an increase in demand, NOW and money market deposits of $3.9 million, or 8.1% and an increase in savings accounts of $2.8 million, or 7.4%. The remaining categories of deposits showed no significant changes. The increase in demand, NOW, money market and savings deposits was due to the Company’s increased focus on relationship management by obtaining customers’ deposit balances when granting loans to new customers. In addition, the increase in savings account balances was related to one customer’s significant deposit in preparation for a planned distribution of funds.

Current wording

Deposits. Total deposits increased by $3.1 million, or 1.8%, to $178.4 million at December 31, 2025, from $175.2 million at June 30, 2025 primarily due to an increase in demand, NOW and money market deposits of $6.0 million, or 12.6%. This increase was offset by a decrease in certificates of deposit balances of $1.8 million, or 2.7%, and a decrease in non-interest-bearing demand deposits of $1.1 million, or 4.7%. Savings deposits showed no significant changes when comparing the two dates. The increase in demand, NOW and money market deposits was due to the Company’s increased focus on relationship management by obtaining customers’ deposit balances when granting loans to new customers. The decrease in certificates of deposit balances was related to customer funds being transferred to higher yielding certificate of deposit specials being offered by our competitors. The decrease in non-interest-bearing demand deposits was due to a combination of seasonal business cash management and increased consumer spending.

Previous wording

Stockholders’ Equity. Total stockholders’ equity increased by $572,000 to $46.3 million when comparing September 30, 2025 with June 30, 2025 primarily due to net income of $444,000.

Current wording

Stockholders’ Equity. Total stockholders’ equity increased by $1.2 million to $46.9 million when comparing December 31, 2025 with June 30, 2025 primarily due to net income of $946,000.

Previous wording

The following table sets forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans, if applicable, are included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable. Loan balances include loans held for sale.

Current wording

The following tables set forth average balances, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances. Non-accrual loans, if applicable, are included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense, as applicable. Loan balances include loans held for sale.

Previous wording

Interest Income**.**Interest income increased by $563,000, or 24.4%, to $2.9 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 primarily due to an increase in loan interest income of $545,000.

Current wording

Interest Income**.**Interest income increased by $683,000, or 35.3%, to $3.0 million for the three months ended December 31, 2025 as compared to $2.3 million for the three months ended December 31, 2024 primarily due to an increase in loan interest income of $719,000.

Previous wording

Loan interest income increased by $545,000, or 26.3%, to $2.6 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to an increase in the average yield on loans and an increase in the average balance of loans. The average yield on the loan portfolio increased by 59 basis points from 4.66% for the three months ended September 30, 2024 to 5.25% for the three months ended September 30, 2025. The average balance of the loan portfolio increased by $22.2 million, or 12.3%, to $201.9 million for the three months ended September 30, 2025 from $179.7 million for the three months ended September 30, 2024. The increase in the average yield on the loan portfolio was the result of higher interest rates on new loan originations. The increase in the average balance of the loan portfolio was primarily related to new loan growth.

Current wording

Loan interest income increased by $719,000, or 26.3%, to $2.8 million for the three months ended December 31, 2025 as compared to $2.0 million for the three months ended December 31, 2024, due to an increase in the average yield on loans and an increase in the average balance of loans. The average yield on the loan portfolio increased by 70 basis points from 4.68% for the three months ended December 31, 2024 to 5.38% for the three months ended December 31, 2025. The average balance of the loan portfolio increased by $31.6 million, or 18.0%, to $207.2 million for the three months ended December 31, 2025 from $175.6 million for the three months ended December 31, 2024. The increase in the average yield on the loan portfolio was the result of higher interest rates on new loan originations. The increase in the average balance of the loan portfolio was primarily related to new loan growth.

Previous wording

Interest Expense. Interest expense increased $30,000, or 3.4%, to $922,000 for the three months ended September 30, 2025 from $892,000 for the three months ended September 30, 2024, due to an increase of $19,000 in interest paid on FHLB borrowings and an increase of $11,000 in interest paid on deposits.

Current wording

Interest Expense. Interest expense increased $32,000, or 3.7%, to $893,000 for the three months ended December 31, 2025 from $861,000 for the three months ended December 31, 2024, due to an increase of $43,000 in interest paid on FHLB borrowings which was offset by a decrease of $11,000 in interest paid on deposits.

Previous wording

Interest expense on deposits increased slightly by $11,000, or 1.4%, to $782,000 for the three months ended September 30, 2025 from $771,000 for the three months ended September 30, 2024 due to an increase in the average balance of deposits offset by a slight decrease in the average rate paid on all deposit categories. The increase in the average balance of deposits was the result of the initiation of new loan relationships which increased the average balances of demand, NOW, money market and savings deposit accounts while the decrease in the average balances of certificate of deposit accounts was primarily related to us successfully migrating customer funds from fixed-rate certificate of deposit products into more liquid deposit products with variable rates. The average rate paid on deposits decreased by seven basis points to 1.96% for the three months ended September 30, 2025 from 2.03% for the three months ended September 30, 2024 due to declining interest rates and a shift in customer funds from fixed-rate certificates of deposit into more liquid deposit products with variable rates.

Current wording

Interest expense on deposits decreased by $11,000, or 1.5%, to $752,000 for the three months ended December 31, 2025 from $763,000 for the three months ended December 31, 2024 due to a decrease in the average rate paid on deposits which was offset by an increase in the average balance of deposits. The average rate paid on deposits decreased by 13 basis points to 1.89% for the three months ended December 31, 2025 from 2.02% for the three months ended December 31, 2024 due to declining interest rates and a shift in customer funds from fixed-rate certificates of deposit into more liquid deposit products with variable rates. The increase in the average balance of deposits was the result of the initiation of new loan relationships which increased the average balances of demand, NOW and money market deposits while the decrease in the average balances of certificate of deposit account balances was related to customer funds being transferred to higher yielding certificate of deposit specials being offered by our competitors.

Previous wording

Interest paid on FHLB borrowings increased $19,000, from $121,000 for the three months ended September 30, 2024 to $140,000 for the three months ended September 30, 2025. The increase in interest paid on borrowings was due to the average balance of FHLB advances increasing by $3.4 million to $15.0 million for the three months ended September 30, 2025 from $11.6 million for the three months ended September 30, 2024. The average rate paid on borrowings decreased slightly from 4.19% for the three months ended September 30, 2024 to 3.75% for the three months ended September 30, 2025 due to a decrease in the federal funds rate.

Current wording

Interest paid on FHLB borrowings increased $43,000, from $98,000 for the three months ended December 31, 2024 to $141,000 for the three months ended December 31, 2025. The increase in interest paid on borrowings was due to the average balance of FHLB advances increasing by $5.1 million to $15.1 million for the three months ended December 31, 2025 from $10.0 million for the three months ended December 31, 2024. The average rate paid on borrowings decreased slightly from 3.90% for the three months ended December 31, 2024 to 3.76% for the three months ended December 31, 2025 due to a decrease in the federal funds rate.

Previous wording

Net Interest Income. Net interest income increased by $533,000, or 37.5%, to $2.0 million for the three months ended September 30, 2025 from $1.4 million for the three months ended September 30, 2024. Net interest rate spread increased by 56 basis points to 3.05% for the three months ended September 30, 2025 from 2.49% for the three months ended September 30, 2024, reflecting a 50 basis points increase in the average yield on interest-earning assets and a six basis points decrease in the average interest rate paid on interest-bearing liabilities. The net interest margin increased to 3.49% for the three months ended September 30, 2025 from 2.85% for the three months ended September 30, 2024. The increase in the average yield on interest earning assets for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to an increase in the average yield of all interest-earning asset categories (with the exception of cash and cash equivalents which decreased by 114 basis points due to a drop in the federal funds rate) related to the increase in market interest rates over the past year and an increase in the percentage of commercial and multi-family real estate loans making up the total loan portfolio which generally carry higher interest rates than the other categories of loans. Net interest-earning assets increased by $14.3 million, or 39.3%, to $50.6 million for the three months ended September 30, 2025 from $36.3 million for the three months ended September 30, 2024.

Current wording

Net Interest Income. Net interest income increased by $652,000, or 46.4%, to $2.1 million for the three months ended December 31, 2025 from $1.4 million for the three months ended December 31, 2024. Net interest rate spread increased by 74 basis points to 3.23% for the three months ended December 31, 2025 from 2.49% for the three months ended December 31, 2024, reflecting a 65 basis points increase in the average yield on interest-earning assets and a nine basis points decrease in the average interest rate paid on interest-bearing liabilities. The net interest margin increased to 3.66% for the three months ended December 31, 2025 from 2.85% for the three months ended December 31, 2024. The increase in the average yield on interest earning assets for the three months ended December 31, 2025 compared to the three months ended December 31, 2024 was primarily due to an increase in the average yield of all interest-earning asset categories (with the exception of cash and cash equivalents which decreased by 45 basis points due to a drop in the federal funds rate) associated with an increase in the percentage of commercial and multi-family real estate loans making up the total loan portfolio which generally carry higher interest rates than the other categories of loans. Also, the Company has been retaining higher rate mortgages in its one-to-four-family residential loan portfolio. Net interest-earning assets increased by $15.8 million, or 43.3%, to $52.2 million for the three months ended December 31, 2025 from $36.4 million for the three months ended December 31, 2024.

Previous wording

Non-interest expenses were $1.6 million for the three months ended September 30, 2025 and 2024. The increase was primarily related to an increase in salaries and benefits associated with the new branch we opened in Brookfield, Wisconsin in January 2024. The remaining changes in other non-interest expense categories were not significant.

Current wording

Non-interest expenses were $1.6 million for the three months ended December 31, 2025 and $1.5 million for the three months ended December 31, 2024. The increase was primarily related to an increase in salaries and employee benefits and professional fees which was offset by a decrease in data processing and office expenses. The salaries and employee benefits increase was associated with the new branch we opened in Brookfield, Wisconsin in January 2024. The increase in professional fees was related to timing of various legal expenses while the decrease in data processing and office expenses was related to a new contract with the Company’s core software provider which started in September 2025. This new contract is expected to save the Company approximately $185,000 annually.

Previous wording

General*.*Net income was $444,000 for the three months ended September 30, 2025, an increase of $269,000, or 154.0%, from net income of $175,000 for the three months ended September 30, 2024. The increase in net income was primarily attributable to an increase in net interest income of $533,000. This increase was offset by a decrease in the recovery of credit losses of $115,000, from a recovery of credit losses of $155,000 for the three months ended September 30, 2024 to a recovery of credit losses of $40,000 for the three months ended September 30, 2025, and a slight increase in non-interest expenses of $82,000.

Current wording

General*.*Net income was $946,000 for the six months ended December 31, 2025, an increase of $720,000, or 318.4%, from net income of $226,000 for the six months ended December 31, 2024. The increase in net income was primarily attributable to an increase in net interest income of $1.2 million. This increase was offset by a decrease in the recovery of credit losses of $140,000, from a recovery of credit losses of $147,000 for the six months ended December 31, 2024 to a recovery of credit losses of $7,000 for the six months ended December 31, 2025, and an increase in non-interest expenses of $183,000. The provision for income taxes also increased by $148,000.

Previous wording

Debt securities interest income increased by $11,000, or 23.9%, to $57,000 for the three months ended September 30, 2025 from $46,000 for the three months ended September 30, 2024 due to an increase in the average yield on the debt securities portfolio of 145 basis points to 4.05% for the three months ended September 30, 2025 which was offset by a decrease of $1.4 million in the average balance of debt securities to $5.7 million for the three months ended September 30, 2025 from $7.1 million for the three months ended September 30, 2024. The increase in the average yield on the debt securities portfolio was due to a $1.0 million floating rate corporate bond that was called in October 2025 that had a coupon rate of 10.17% for the last three months prior to being called. It was purchased in May 2021. The average balance of debt securities continued to decrease as a result of securities calls and paydowns.

Current wording

Debt securities interest income decreased by $3,000, or 3.5%, to $88,000 for the six months ended December 31, 2025 from $91,000 for the six months ended December 31, 2024 due to a decrease of $1.9 million in the average balance of debt securities to $5.1 million for the six months ended December 31, 2025 from $7.0 million for the six months ended December 31, 2024. This decrease was offset by an increase in the average yield on the debt securities portfolio of 82 basis points to 3.42% for the six months ended December 31, 2025 as compared to 2.60% for the six months ended December 31, 2024. The average balance of debt securities continued to decrease as a result of securities calls and paydowns. The increase in the average yield on the debt securities portfolio was due to a $1.0 million floating rate corporate bond that was called in October 2025 that had a coupon rate of 10.17% for the last three months prior to being called. It was purchased in May 2021.

Previous wording

Based on our evaluation of the above factors, we recorded a recovery of credit losses of $40,000 for the three months ended September 30, 2025 compared to a recovery of credit losses of $155,000 for the three months ended September 30, 2024. The decrease in recovery when comparing the two periods was primarily related to an increase in the loan portfolio for the three months ended September 30, 2025. The recovery was related to the projected future economic conditions in our market area stabilizing over the next two years, an increase in prepayments in both consumer and commercial loans, which was impactful to the weighted average life of the loan portfolio and the continuous recoveries of two legacy charge-offs. During the three months ended September 30, 2025, the Company updated the historical look-back method period used in developing lifetime loss estimate. Management believes the extended period better reflects a set of relevant loss experience. These predictions align with the Bank’s historic charge-off history over the past 9 years adjusted for current and forecasted conditions.

Current wording

Based on our evaluation of the above factors, we recorded a recovery of credit losses of $7,000 for the six months ended December 31, 2025 compared to a recovery of credit losses of $147,000 for the six months ended December 31, 2024. The decrease in recovery when comparing the two periods was primarily related to an increase in the loan portfolio for the six months ended December 31, 2025. The recovery continues to be related to the projected future economic conditions in our market area stabilizing over the next two years, an increase in prepayments in both consumer and commercial loans, which was impactful to the weighted average life of the loan portfolio and the continuous recoveries of two legacy charge-offs.

Previous wording

Provision for Income Taxes. Income tax expense was $103,000 for the three months ended September 30, 2025, an increase of $62,000, as compared to income tax expense of $41,000 for the three months ended September 30, 2024. The increase in income tax expense was primarily the result of an increase in income before provision for income taxes. The effective tax rate for the three months ended September 30, 2025 and 2024 was 18.8% for both periods.

Current wording

Provision for Income Taxes. Income tax expense was $190,000 for the six months ended December 31, 2025, an increase of $148,000, as compared to income tax expense of $42,000 for the six months ended December 31, 2024. The increase in income tax expense was primarily the result of an increase in income before provision for income taxes during the six months ended December 31, 2025. The effective tax rate for the six months ended December 31, 2025 and 2024 was 16.75% and 15.71%, respectively.

Previous wording

Non-performing assets include other real estate owned of $996,000 at September 30, 2025 and June 30, 2025. During the year ended June 30, 2023, the Company foreclosed on collateral supporting a construction loan which was valued at $2.3 million and was included in foreclosed assets (OREO), net. The valuation was based on independent appraisals subject to certain discounts less estimated costs to sell. A subsequent independent appraisal was obtained in April 2024 subject to certain discounts less estimated costs to sell. After adjusting for estimated costs to sell, the revised valuation was $1.4 million resulting in a provision for valuation allowance of $937,100 being recorded during the year ended June 30, 2024. An offer to sell the property for $1.1 million was accepted by the Company in August 2025 resulting in a provision for valuation allowance of $378,767 being recorded during the year ended June 30, 2025. The sale is subject to customary due diligence and has not closed as of November 12, 2025. Non-performing loans at September 30, 2025 consisted of two one-to four-family residential loans that were fully secured compared to one one-to four-family residential loan that was fully secured at June 30, 2025.

Current wording

Non-performing assets include other real estate owned of $996,000 at December 31, 2025 and June 30, 2025. During the year ended June 30, 2023, the Company foreclosed on collateral supporting a construction loan which was valued at $2.3 million and was included in foreclosed assets (OREO), net. The valuation was based on independent appraisals subject to certain discounts less estimated costs to sell. A subsequent independent appraisal was obtained in April 2024 subject to certain discounts less estimated costs to sell. After adjusting for estimated costs to sell, the revised valuation was $1.4 million resulting in a provision for valuation allowance of $937,100 being recorded during the year ended June 30, 2024. An offer to sell the property for $1.1 million was accepted by the Company in August 2025 resulting in a provision for valuation allowance of $378,767 being recorded during the year ended June 30, 2025. The sale contract was terminated during the current quarter and the Company has relisted the property for $1.5 million. Non-performing loans at December 31, 2025 consisted of two one-to four-family residential loans that were fully secured compared to one one-to four-family residential loan that was fully secured at June 30, 2025.

Previous wording

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Chicago. At September 30, 2025, we had a $83.4 million line of credit with the Federal Home Loan Bank of Chicago, which had $15.0 million in borrowings outstanding as of that date. The Bank also has $17.0 million available to borrow from the Federal Reserve Bank which is pledged by multi-family loans and an unsecured Federal Funds purchasing limit of $5.0 million with the Bank’s correspondent bank. There were no borrowings under these arrangements at September 30, 2025.

Current wording

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from the sale of loans, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Chicago. At December 31, 2025, we had a $85.9 million line of credit with the Federal Home Loan Bank of Chicago, which had $19.0 million in borrowings outstanding as of that date. The Bank also has $16.5 million available to borrow from the Federal Reserve Bank which is pledged by multi-family loans and an unsecured Federal Funds purchasing limit of $5.0 million with the Bank’s correspondent bank. There were no borrowings under these arrangements at December 31, 2025.

Previous wording

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $464,000 and $945,000 of cash provided by operating activities for the three months ended September 30, 2025 and 2024, respectively. Net cash provided by (used in) investing activities, which consists primarily of disbursements for loan origination, the purchase of securities, and the purchase of premises and equipment offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $5.9 million used in investing activities compared to $7.5 million provided by investing activities for the three months ended September 30, 2025 and 2024, respectively. Net cash provided by (used in) financing activities, consisting of activity in deposit accounts and borrowings, was $6.5 million provided by financing activities compared to $3.9 million being used in financing activities for the three months ended September 30, 2025 and 2024, respectively.

Current wording

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating activities was $1.9 million and $1.1 million of cash provided by operating activities for the six months ended December 31, 2025 and 2024, respectively. Net cash provided by (used in) investing activities, which consists primarily of disbursements for loan origination, the purchase of securities, and the purchase of premises and equipment offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and pay downs on securities, was $9.8 million used in investing activities compared to $7.2 million provided by investing activities for the six months ended December 31, 2025 and 2024, respectively. Net cash provided by (used in) financing activities, consisting of activity in deposit accounts and borrowings, was $7.1 million provided by financing activities compared to $2.6 million being used in financing activities for the six months ended December 31, 2025 and 2024, respectively.

Previous wording

Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make. At September 30, 2025, we had outstanding commitments to originate loans of $7.5 million, and no outstanding commitments to sell loans. We anticipate that we will have sufficient funds available to meet our current lending commitments. Time deposits that are scheduled to mature in one year or less from September 30, 2025 totaled $45.1 million, which include $2.3 million in brokered certificates of deposit. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize additional Federal Home Loan Bank advances or other borrowings, which may result in higher levels of interest expense.

Current wording

Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make. At December 31, 2025, we had outstanding commitments to originate loans of $4.7 million, and no outstanding commitments to sell loans. We anticipate that we will have sufficient funds available to meet our current lending commitments. Time deposits that are scheduled to mature in one year or less from December 31, 2025 totaled $43.6 million, which include $2.3 million in brokered certificates of deposit. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize additional Federal Home Loan Bank advances or other borrowings, which may result in higher levels of interest expense.