UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 2000
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OR
[ ] 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 0-12510
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MARATHON BANCORP
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(Exact name of registrant as specified in its charter)
California 95-3770539
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(State or other jurisdiction of incorporation) (I.R.S. Employer Identification
No.)
11150 West Olympic Boulevard, Los Angeles, CA 90064
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 996-9100
-----------------
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 X No ____
---
As of November 1, 2000, there were 3,838,019 shares of no par Common
Stock issued and outstanding.
<PAGE>
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
---------------- ----------------
ASSETS 2000 1999
---------------- ----------------
<S> <C> <C>
Cash and Due From Banks. . . . . . . . . . . . . . . . . . . . . $ 5,620,000 $ 7,891,000
Federal Funds Sold . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 1,000,000
---------------- ----------------
TOTAL CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . 8,620,000 8,891,000
Interest -Bearing Deposits With Financial Institutions . . . . . - 100,000
Investment Securities:
Securities Available for Sale . . . . . . . . . . . . . . . . 5,716,000 8,590,000
Securities Held to Maturity (Approx. market value:
2000 - $16,306,000; 1999 - $12,009,000): . . . . . . . . 16,497,000 12,878,000
---------------- ----------------
TOTAL INVESTMENT SECURITIES . . . . . . . . . . . . . . . 22,213,000 21,468,000
Federal Home Loan and Federal Reserve Bank stock, at cost. . . . 374,000 482,000
Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,612,000 50,102,000
Less Allowance for Credit Losses. . . . . . . . . . . . . . . ( 1,116,000) ( 853,000)
---------------- ----------------
NET LOANS . . . . . . . . . . . . . . . . . . . . . . . . 53,496,000 49,249,000
Premises and Equipment . . . . . . . . . . . . . . . . . . . . . 272,000 325,000
Cash Surrender Value of Life Insurance . . . . . . . . . . . . . 3,622,000 1,559,000
Accrued Interest and Other Assets. . . . . . . . . . . . . . . . 1,150,000 1,045,000
---------------- ----------------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . $ 89,747,000 $ 83,119,000
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-Bearing . . . . . . . . . . . . . . . . . . . . . $ 29,794,000 $ 27,529,000
Interest-Bearing. . . . . . . . . . . . . . . . . . . . . . . 47,590,000 44,026,000
---------------- ----------------
TOTAL DEPOSITS. . . . . . . . . . . . . . . . . . . . . . 77,384,000 71,555,000
Accrued Interest and Other Liabilities . . . . . . . . . . . . . 695,000 553,000
Federal Home Loan Bank Advance . . . . . . . . . . . . . . . . . 1,800,000 1,875,000
---------------- ----------------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . 79,879,000 73,983,000
Shareholders' Equity
Preferred Shares - No Par Value, 1,000,000 Shares Authorized,
No Shares Issued and Outstanding . . . . . . . . . . . . . - -
Common Shares - No Par Value, 9,000,000 Shares Authorized,
3,838,019 and 3,830,019 Shares Issued and Outstanding at
September 30, 2000 and December 31, 1999, respectively . . 13,675,000 13,654,000
Accumulated Deficit . . . . . . . . . . . . . . . . . . . . . ( 3,660,000) ( 4,319,000)
Accumulated Other Comprehensive Income - Net Unrealized
Gains (Losses) on Available-for-Sale Securities. . . . . . ( 147,000) ( 199,000)
---------------- ----------------
TOTAL SHAREHOLDERS' EQUITY. . . . . . . . . . . . . . . . 9,868,000 9,136,000
---------------- ----------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . . $ 89,747,000 $ 83,119,000
================ ================
</TABLE>
Marathon Bancorp and Subsidiary
<PAGE>
Consolidated Statements of Operations
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------- ---------------
<S> <C> <C> <C> <C>
2000 1999 2000 1999
--------------- --------------- --------------- ---------------
INTEREST INCOME
Interest and Fees on Loans . . . . . . . . . . . . . $ 1,314,000 $ 982,000 $ 3,675,000 $ 2,744,000
Interest on Investment Securities - Taxable. . . . . 364,000 262,000 993,000 768,000
Other Interest Income. . . . . . . . . . . . . . . . 85,000 64,000 278,000 205,000
--------------- --------------- --------------- ---------------
TOTAL INTEREST INCOME . . . . . . . . . . . . . . 1,763,000 1,308,000 4,946,000 3,717,000
INTEREST EXPENSE
Interest on Demand Deposits. . . . . . . . . . . . . 8,000 8,000 24,000 25,000
Interest on Money Market and Savings . . . . . . . . 301,000 218,000 815,000 606,000
Interest on Time Deposits. . . . . . . . . . . . . . 234,000 127,000 729,000 402,000
Other Interest Expense . . . . . . . . . . . . . . . 1,000 - 2,000 -
--------------- --------------- --------------- ---------------
TOTAL INTEREST EXPENSE. . . . . . . . . . . . . . 544,000 353,000 1,570,000 1,033,000
NET INTEREST INCOME. . . . . . . . . . . . . . . . . . . 1,219,000 955,000 3,376,000 2,684,000
Provision for Credit Losses. . . . . . . . . . . . . . . 30,000 - 90,000 -
--------------- --------------- --------------- ---------------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES. . . . . . . . . . 1,189,000 955,000 3,286,000 2,684,000
NONINTEREST INCOME
Service Charges and Fees on Deposits . . . . . . . . 63,000 73,000 197,000 217,000
Dividends on Cash Surrender Value of Life Insurance. 52,000 18,000 146,000 57,000
Net Gain/Loss Sale of Securities . . . . . . . . . . - ( 9,000) - ( 9,000)
Other Noninterest Income . . . . . . . . . . . . . . 28,000 91,000 75,000 130,000
--------------- --------------- --------------- ---------------
TOTAL NONINTEREST INCOME. . . . . . . . . . . . . 143,000 173,000 418,000 395,000
NONINTEREST EXPENSE
Salaries and Employee Benefits . . . . . . . . . . . 526,000 451,000 1,525,000 1,309,000
Occupancy Expenses . . . . . . . . . . . . . . . . . 143,000 130,000 420,000 396,000
Furniture and Equipment. . . . . . . . . . . . . . . 27,000 33,000 77,000 91,000
Professional Services. . . . . . . . . . . . . . . . 24,000 43,000 83,000 97,000
Business Promotion and Donations . . . . . . . . . . 11,000 17,000 48,000 54,000
Stationery and Supplies. . . . . . . . . . . . . . . 9,000 14,000 34,000 42,000
Data Processing Services . . . . . . . . . . . . . . 68,000 66,000 222,000 205,000
Postage and Mailing costs. . . . . . . . . . . . . . 8,000 10,000 24,000 29,000
Insurance and Assessments. . . . . . . . . . . . . . 42,000 31,000 116,000 94,000
Legal Fees and Costs . . . . . . . . . . . . . . . . 39,000 25,000 89,000 86,000
Customer Related expenses. . . . . . . . . . . . . . 83,000 68,000 238,000 191,000
Net Operating Cost of Other Real Estate Owned. . . . - ( 1,000) - -
Other Expenses . . . . . . . . . . . . . . . . . . . 62,000 64,000 178,000 164,000
--------------- --------------- --------------- ---------------
TOTAL NONINTEREST EXPENSE . . . . . . . . . . . . 1,042,000 951,000 3,054,000 2,758,000
GAIN (LOSS) BEFORE INCOME TAXES. . . . . . . . . . . . . 290,000 177,000 650,000 321,000
Income Taxes (Benefit) . . . . . . . . . . . . . . . . . ( 6,000) ( 1,000) ( 9,000) ( 9,000)
--------------- --------------- =============== ---------------
NET INCOME (LOSS) . . . . . . . . . . . . . . . . $ 296,000 $ 178,000 $ 659,000 $ 330,000
=============== =============== =============== ===============
Per Share Data:
Net Income (Loss) - Basic . . . . . . . . . . . . $ 0.08 $ 0.05 $ 0.17 $ 0.09
Net Income (Loss) - Diluted . . . . . . . . . . . $ 0.08 $ 0.05 $ 0.17 $ 0.09
Book Value $ 2.57 $ 2.32
Return on Average Assets . . . . . . . . . . . . . . . . 1.33% 0.90% 1.00% 0.58%
Return on Average Equity . . . . . . . . . . . . . . . . 12.13% 8.07% 9.32% 5.09%
</TABLE>
Marathon Bancorp and Subsidiary
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
<S> <C> <C>
2000 1999
--------------- ---------------
OPERATING ACTIVITIES
Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 659,000 $ 330,000
Adjustments to Reconcile Net Loss to Net Cash Provided
by Operating Activities:
Depreciation and Amortization . . . . . . . . . . . . . . . . . . . 92,000 100,000
Provision for Credit Losses . . . . . . . . . . . . . . . . . . . . 90,000 -
Net Amortization of Premiums and Discounts on Investment Securities 3,000 37,000
Loss on sale of Securities Available for Sale . . . . . . . . . . . - 9,000
Net Change in Deferred Loan Origination Fees. . . . . . . . . . . . 229,000 103,000
Net Increase in Cash Surrender Value of Life Insurance. . . . . . . ( 128,000) ( 48,000)
Net Change in Accrued Interest, Other Assets and Other Liabilities. 37,000 ( 244,000)
--------------- ---------------
NET CASH PROVIDED BY OPERATING ACTIVITIES. . . . . . . . . . . . 982,000 287,000
INVESTING ACTIVITIES
Net Change in Interest-Bearing Deposits with
Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . 100,000 199,000
Purchases of Available-for-Sale Securities . . . . . . . . . . . . . . . ( 7,054,000) ( 3,771,000)
Purchases of Held-to-Maturity Securities. . . . . . . . . . . . . . . . . ( 4,502,000) ( 3,312,000)
Proceeds from Maturities of Available-for-Sale Securities . . . . . . . . 8,000,000 2,000,000
Proceeds from the Sale of Available-for-Sale Securities . . . . . . . . . 2,000,000 991,000
Proceeds from Maturities of Held-to-Maturity Securities . . . . . . . . . 860,000 5,480,000
Redemption (Purchase) of Federal Home Loan & Federal Reserve Bank Stock . 108,000 ( 234,000)
Net Change in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4,566,000) ( 6,273,000)
Purchase of Life Insurance. . . . . . . . . . . . . . . . . . . . . . . . ( 1,935,000) -
Purchases of Premises and Equipment . . . . . . . . . . . . . . . . . . . ( 39,000) ( 88,000)
--------------- ---------------
NET CASH USED BY INVESTING ACTIVITIES . . . . . . . . . . . . . . . ( 7,028,000) ( 5,008,000)
FINANCING ACTIVITIES
Net Change in Demand Deposits, Money Market and Savings . . . . . . . . . 5,333,000 8,648,000
Net Change in Time Deposits . . . . . . . . . . . . . . . . . . . . . . . 496,000 ( 2,764,000)
Federal Home Loan Bank Advance. . . . . . . . . . . . . . . . . . . . . . ( 75,000) -
Proceeds from Exercise of Stock Options . . . . . . . . . . . . . . . . . 21,000 16,000
--------------- ---------------
NET CASH PROVIDED BY FINANCING ACTIVITIES. . . . . . . . . . . . . . 5,775,000 5,900,000
--------------- ---------------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . ( 271,000) 1,179,000
Cash and Cash Equivalents at Beginning of Year . . . . . . . . . . . . . . . 8,891,000 9,249,000
--------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF YEAR . . . . . . . . . . . . . . . . . . $ 8,620,000 $ 10,428,000
=============== ===============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,636,000 $ 988,000
Income Taxes Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,000 $ 2,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Consolidated Statement of Equity
Marathon Bancorp and Subsidiary
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Other
Common Shares Comprehensive Accumulated Comprehensive
--------------------------
Shares Amount Income Deficit Income Total
------------- ----------- -------------- ------------- --------------- ----------
BALANCE, DECEMBER 31, 1999 . . 3,830,019 $13,654,000 $ (4,319,000) $ ( 199,000) $9,136,000
Exercise of Stock Options. . . 8,000 21,000 21,000
COMPREHENSIVE INCOME:
Net Income $ 659,000 659,000 659,000
Net Change in Unrealized Gain
(Loss) on Available-for-Sale
Securities 52,000 52,000 52,000
--------------
TOTAL COMPREHENSIVE INCOME $ 711,000
==============
BALANCE, SEPTEMBER 30, 2000. . 3,838,019 $13,675,000 $ (3,660,000) $ ( 147,000) $9,868,000
============= =========== ============= =============== ==========
</TABLE>
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION AND MANAGEMENT REPRESENTATIONS
The unaudited consolidated financial statements have been prepared in accordance
with the instructions to Form 10-QSB and, therefore, do not include all
footnotes normally required for complete financial disclosure. While the
Company believes that the disclosures presented are sufficient to make the
information not misleading, reference may be made to the consolidated financial
statements and notes thereto included in the Company's 1999 Annual Report on
Form 10-KSB.
The accompanying consolidated statements of financial condition and the related
consolidated statements of operations and cash flows reflect, in the opinion of
management, all material adjustments necessary for fair presentation of the
Company's financial position as of September 30, 2000 and December 31, 1999,
results of operations and changes in cash flows for the nine-month period ended
September 30, 2000 and 1999. The results of operations for the three-month
period and nine-month period ended September 30, 2000 are not necessarily
indicative of what the results of operations will be for the full year ending
December 31, 2000.
(2) EARNINGS PER SHARE (EPS)
Basic EPS excludes dilution and is computed by dividing income available to
common stockholders by the weighted-average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that then shared
in the earnings of the entity.
Accordingly, the basic weighted average number of shares used to compute the net
income per share were 3,837,954 and 3,827,091 respectively for the three-month
period ended September 30, 2000 and September 30, 1999 and 3,836,110 and
3,825,880 for the nine-month period ending September 30, 2000 and September 30,
1999. There was no dilution to change the basic average number of shares in any
period shown.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion is intended to provide additional information about
Marathon Bancorp (the Company), its financial condition and results of
operations, which is not otherwise apparent from the consolidated financial
statements. Since Marathon National Bank (the Bank) represents a substantial
portion of the Company's activities and investments, the following relates
primarily to the financial condition and operations of the Bank. It should be
read in conjunction with the Company's 1999 Annual Report on Form 10-KSB.
FINANCIAL HIGHLIGHTS OVERVIEW
The Company posted third quarter 2000 earnings of $296,000. This is a 66%
increase over the $178,000 earned in the third quarter of 1999. The basic and
diluted per share earnings were $.08 for 2000 versus $0.05 per share for the
same period in 1999.
The nine-month earnings were $659,000, up 100% over the $330,000 reported for
the nine months ended September 30, 1999. The basic and diluted per share
earnings were $0.17 versus $0.09 per share for the same period in 1999.
Return on average assets increased to 1.33% for the third quarter and 1.00% for
the nine-month period. Return of average equity was 12.13% for the quarter and
9.32% for the nine months.
RESULTS OF OPERATIONS
Net Interest Income
Net interest income continued to improve during the third quarter of 2000. With
short-term rates stabilizing, the bank's net interest margin has improved to an
average 5.95% for the third quarter of 2000 versus 5.29% in the third quarter of
1999. The Company is asset sensitive and does improve its' margins as rates
rise and conversely margins decrease in a falling rate environment. The margin
for the first nine months of 2000 was 5.49% versus 5.16% for the first nine
months of 1999.
Interest Income for the third quarter of 2000 increased $455,000 or 35% and
$1,229,000, up 33% for the first nine months. Interest and fees on loans
increased 34% for the quarter and nine months due to both an increase in overall
yields as well as, growth in the loan portfolio. Investment income increased
39% for the quarter and 29% for the nine-month period where the growth in the
investment portfolio was small but reinvestments were done at higher yields.
Other interest income, which is mainly interest on fed funds sold, grew 33% for
the third quarter and 36% for the nine-month period.
Interest expense increased $191,000 or 54% for the third quarter and $537,000 or
52% for the first nine months of 2000. This is the opposite of what happened in
1999 where interest costs for the third quarter decreased 7% or $28,000 and for
the nine-month period were only $2,000 less. The reason the large percentage
increase in interest costs did not offset the income change is due to the fact
that 39% of deposits are noninterest bearing.
Noninterest Income
Noninterest income increased 6% for the nine-months ended September 30, 2000.
The service charges and other income showed a decrease due to the fact that
there was a one-time recovery of service charges and fees in the amount of
$70,000 received in the third quarter of 1999. This was also reflected in the
third quarter noninterest income results. The dividends earned on the cash
surrender value of life insurance increased $34,000 in the third quarter. These
earnings also increased $89,000 for the nine-month period due to a larger
investment in this asset.
Noninterest Expense
Noninterest expenses increased for the quarter ended September 30, 2000 by 10%
or $91,000. Increased human resource costs and occupancy expenses were higher
than the third quarter of 2000 due to the opening of our loan production office
(LPO) during the fourth quarter of 1999. The Company is considering turning the
LPO into a full service branch office in the third quarter of 2001 and opening
an additional LPO in the latter part of 2001. Decreases were made in the
equipment costs professional services fees, supplies and other expenses. New
commercial checking relationships caused the increase in customer related
expenses due to courier costs and check printing charges.
For the nine-month period noninterest costs increased 11% compared to 1999. The
largest factor is the additional staffing and overhead costs of the LPO for the
full nine months of 2000. Human resource costs also include the addition of a
lending officer in the second quarter of 2000. Data processing costs increased
in the item processing area. Although insurance costs remained constant OCC and
FDIC regulatory assets based on the size of the bank increased.
Provision for Credit Losses:
Loans classified by the Bank as substandard or doubtful decreased from
$2,318,000 at December 31, 1999 to $1,187,000 at September 30, 2000. There were
no nonperforming loans, which consist of loans past due over 90 days and
accruing plus loans on nonaccural, at September 30, 2000 compared to $3,000 at
December 31, 1999. The Company continues to have no other real estate owned.
During the third quarter, the Bank recorded no charge-offs while collecting
recoveries on loans charged off of $165,000. The net change to the reserve for
credit losses was $34,000. For the nine-month period ending September 30, 2000
recorded charge-offs were $36,000 and recoveries totaled $209,000.
After an assessment of the loan portfolio and economic conditions, the
management felt that an increase in the reserve for credit losses was prudent
and therefore made a provision to the credit loss reserve of $30,000 for the
quarter bringing the year-to-date provision to $90,000 compared to no provision
in 1999. Based on the foregoing information, its internal migration analysis
and current economic conditions management determined that the current level of
the reserve for credit losses to be adequate at September 30, 2000.
ASSETS AND LIABILITIES
The company has had steady asset growth, increasing $6,628,000 or 11% over
December 1999 and 12% above September 1999. The majority of the growth has been
in the loan portfolio, which has increased $4,510,000 or 9% since year-end. The
loan growth continues to be in the commercial and industrial loan portfolio as
well as construction loans.
Deposits increased $5,829,000 or 8% since the end of 1999. The deposit growth
was split with 39% in noninterest-bearing deposits and 61% in interest-bearing
deposits. The increase in interest-bearing deposits was in our investors money
market product with relatively no change in our time certificate of deposit
portfolio. With the mix of noninterest-bearing deposits included in the overall
deposit growth it contributed to temper the increase in interest costs.
LIQUIDITY AND CAPITAL
Asset/Liability Management
The Company's Asset/Liability Committee is responsible for managing the risks
associated with changing interest rates and their impact on earnings, as well
as, the liquidity needs of the Company. Management continually monitors
liquidity in relation to current and anticipated levels of loans and deposits,
and relates the data to short and long term expectations. In order to serve
customers effectively, funds need to be available to meet their credit needs as
well as their withdrawals of deposited funds. Assets that are normally
considered liquid are federal funds sold, available for sale investment
securities, cash and due from banks, and securities purchased under agreements
to resell. The ratio of liquid assets to deposits was 16% at September 30, 2000
and the loan to deposit ratio was 71% increased from the first and second
quarter. The Bank's liquidity declined slightly at quarter-end and the bank
took an advance from the Federal Home Loan Bank that was repaid in October with
matured securities and increased deposits.
Interest rate risk management focuses on the maturity and repricing of interest
earning assets in relationship to the interest bearing liabilities that fund
them. Net interest income can be vulnerable to fluctuations arising from a
change in the general level of interest rates to the extent that the average
yield on earning assets responds differently to such a change than does the
average cost of funds.
The Company measures interest rate sensitivity by distributing the maturities
and repricing periods of assets and supporting funding liabilities into interest
sensitivity periods, summarizing interest rate risk in terms of the resulting
interest sensitivity gaps. A positive gap indicates that more interest
sensitive assets than interest sensitive liabilities will be repriced during a
specified period, while a negative gap indicates the opposite condition.
It is the Bank's policy to maintain an adequate balance of rate sensitive assets
to rate sensitive liabilities. Due to the fact that the Bank has a large
portfolio of noninterest bearing demand deposits the Company has historically
been asset sensitive with a positive gap. The Company's asset sensitivity has
been decreased during the last twelve-month period by increasing the investment
portfolio and lengthening the maturities. The Company's cumulative gap as a
percent of total assets at September 30, 2000 was 24% down from the 31% reported
at September 30, 1999.
Capital
Shareholders' equity increased by $732,000 during the first nine month's of
2000. The exercise of stock options during the period increased common shares
by 8,000 and raised $21,000.
The Bank is required to meet certain minimum risk-based capital guidelines and
leverage ratios promulgated by the bank regulatory authorities. The risk based
capital standards establish capital requirements that are more sensitive to risk
differences between various assets, consider off balance sheet activities in
assessing capital adequacy, and minimize the disincentives to holding liquid,
low risk assets. The leverage ratio consists of tangible Tier 1 capital divided
by average total assets.
The adequately capitalized risk-based capital ratio required by the federal
regulators is 8.0 percent and the well-capitalized ratio is 10.0 percent. The
Tier I capital to average assets (leverage ratio) required by the federal
regulators for adequately capitalized is 4.0 percent and 6.0 percent is required
to be well-capitalized. At September 30, 2000 the Company and the Bank had a
risk based capital ratio of 14.3 percent, and a Tier 1 capital leverage ratio of
11.1 percent.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARATHON BANCORP
Date: November 13, 2000 Craig D. Collette
-------------------
Craig D. Collette
President and Chief Executive
Officer
Howard J. Stanke
------------------
Howard J. Stanke
Executive Vice President and
Chief Financial Officer
<PAGE>
