other material
confidence high
sentiment negative
materiality 0.70
Marathon Bancorp restates FY2022 & FY2023 quarterly statements due to deferred tax liability error
Marathon Bancorp, Inc. /MD/
- Audit committee concluded prior audited FY2022 and unaudited quarterly periods from Sep 2021 to Mar 2023 should no longer be relied upon.
- Error: erroneously recorded a deferred tax liability for pre-1988 excess tax bad debt due to misinterpretation of thrift status after 1993 charter conversion.
- Correction requires a $481,798 adjustment to opening retained earnings as of July 1, 2021.
- Unrecaptured pre-1988 federal bad debt reserve of ~$1.5 million; no deferred tax liability provided as management does not intend to trigger recapture.
- Restated financials will be included in the pending FY2023 10-K.