Marathon Bancorp’s Nasdaq Debut: A Strategic Shift for Wisconsin’s Community Bank

Marathon Bancorp, Inc. (MBBC) has completed its long-awaited transition from a mutual holding company (MHC) to a fully publicly traded entity, marking a pivotal moment for Wisconsin’s Marathon Bank and its stakeholders. The conversion, finalized on April 21, 2025, paves the way for the bank’s common stock to begin trading on the Nasdaq Capital Market the following day, underscoring its ambition to broaden its investor base and capitalize on regional growth opportunities.

The Conversion Blueprint

The process, initiated in December 2024, involved converting Marathon MHC’s 57.4% ownership stake in Marathon Bancorp into shares distributed to the public. The related stock offering, priced at $10 per share, raised $16.9 million by selling 1,693,411 shares. A critical feature was the exchange ratio of 1.3728-to-one, meaning existing public shareholders received 1.3728 new shares for each pre-conversion share. This mechanism ensures continuity for long-term investors while diluting the former MHC’s stake entirely.

Crucially, the offering prioritized Marathon Bank depositors and local residents in Wisconsin’s Marathon, Ozaukee, Milwaukee, and Waukesha counties, reflecting the bank’s commitment to community banking. The Employee Stock Ownership Plan (ESOP) also secured 135,472 shares, aligning employee interests with shareholder value.

The $16.9 million raised will bolster Marathon Bank’s capital reserves, supporting its five branches’ operations and potential expansions. Notably, this capital injection follows a 2023 stock repurchase program allowing the bank to buy up to 5% of its shares, signaling confidence in its valuation even before the conversion.

Market Access and Structural Advantages

Transitioning to Nasdaq is a strategic move to enhance liquidity and visibility. As a publicly traded entity, Marathon Bancorp can now access broader investor pools, including institutional funds and retail investors, which could drive long-term growth. The stock’s debut at $10 per share sets a baseline valuation, but its performance will hinge on Marathon Bank’s ability to execute its regional strategy.

The bank’s footprint in Wisconsin—particularly its Brookfield branch, which celebrated its one-year anniversary in February 2025—positions it to capitalize on local economic trends. With a focus on personalized service, the bank may attract deposits and loans from underserved markets, though it faces competition from larger regional banks.

Risks and Regulatory Considerations

While the conversion secured all necessary approvals by April 16, 2025, forward-looking risks remain. These include interest rate fluctuations, which could pressure net interest margins, and economic slowdowns in Wisconsin’s key sectors. Regulatory compliance, particularly under the Federal Reserve’s oversight, will be critical to maintaining trust.

Moreover, the exchange ratio and dilution dynamics require scrutiny. Existing shareholders’ stake increased, but the total post-conversion shares (2,942,064) represent a 37% expansion from pre-conversion levels. This could weigh on earnings per share (EPS) unless revenue grows proportionally.

Conclusion: A Prudent Bet on Regional Resilience?

Marathon Bancorp’s conversion and Nasdaq listing represent a disciplined execution of a long-term strategy. The $10-per-share offering price, community-focused distribution, and employee alignment via the ESOP suggest a well-structured capital raise. With $16.9 million in new capital and a robust regulatory foundation, the bank is positioned to strengthen its regional presence.

Investors should monitor two key metrics: asset quality (non-performing loan ratios) and deposit growth, which will indicate the bank’s operational health. Additionally, will reveal market sentiment toward its transition.

While risks such as economic volatility persist, Marathon Bancorp’s focus on community banking—a sector that thrives on local loyalty—offers a compelling narrative for investors seeking stability in a fragmented banking landscape. For now, the completion of this conversion is a clear win, transforming a mutual entity into a publicly traded champion of Wisconsin’s financial future.