Magnolia Bancorp Reports $114,000 Net Loss for Nine Months Ended September 30, 2025

Magnolia Bancorp, Inc. reported a net loss of $114,000 for the nine months ended September 30, 2025, compared to a net loss of $60,000 for the same period in 2024. The company's total interest income increased by 8.3% to $1.18 million, driven primarily by a significant rise in interest from deposits with other banks and cash equivalents, which surged by 138.6%. However, this was partially offset by a decrease in interest income from loans, which fell by 0.5% due to a decline in the average loan balance. Total interest expense also decreased by 34.7% to $190,000, reflecting a reduction in the average balance of certificates of deposit and the absence of interest on Federal Home Loan Bank (FHLB) advances.

In terms of operational metrics, Magnolia's total assets decreased by 17.8% to $36.1 million, primarily due to a $7 million drop in cash and cash equivalents. The company’s loans receivable increased slightly by 2.1% to $31.3 million, with total loan originations rising significantly by 369% to $2.5 million during the first nine months of 2025. The decline in total deposits was notable, with a 48.6% decrease to $14.3 million, attributed to the completion of the conversion process and the subsequent use of deposits to purchase shares of common stock.

Strategically, Magnolia Bancorp completed its conversion from a mutual to a stock form in January 2025, which included the issuance of 833,750 shares of common stock. This conversion has positioned the company to enhance its lending capacity and pursue growth opportunities. The company aims to focus on originating fixed-rate one- to four-family residential mortgage loans while also modestly increasing its commercial real estate and multi-family residential loan portfolios. As of September 30, 2025, Magnolia's loan portfolio consisted predominantly of fixed-rate residential loans, which accounted for 90.6% of total loans.

Looking ahead, Magnolia anticipates that recent reductions in the federal funds rate will lead to a decrease in its cost of funds and an increase in demand for fixed-rate loans. However, the company expects its non-interest expenses to remain elevated due to the costs associated with being a public company and the need to hire additional personnel. Management is committed to maintaining a strong liquidity position and is actively monitoring its liquidity to meet financial obligations. The company remains focused on building long-term value for shareholders while navigating the challenges posed by current market conditions.