Magnolia Bancorp, Inc. reported a net loss of $170,000 for the fiscal year ending December 31, 2025, compared to a net loss of $100,000 in the previous year. The company's total assets decreased by 14.9% to $37.4 million, down from $44.0 million in 2024. This decline was primarily attributed to a $5.4 million reduction in cash and cash equivalents and a $1.2 million decrease in other assets. Despite the overall loss, net interest income increased by 25.1% to $1.336 million, driven by a rise in interest income from loans and other interest-earning assets.
The company experienced significant changes in its loan portfolio, with total loans receivable increasing slightly by 0.3% to $30.7 million. Notably, loan originations surged by 288.5% to $5.2 million, primarily due to a rise in demand for fixed-rate one-to-four family residential mortgage loans. The composition of the loan portfolio remained stable, with residential real estate loans accounting for 97.8% of total loans. However, the company reported two loans totaling $136,000 that were 90 days or more past due, marking a shift from the previous year when there were no delinquencies.
In terms of operational developments, Magnolia Bancorp completed its conversion from a mutual to a stock organization in January 2025, raising approximately $8.3 million through its initial public offering. The company retained $6.9 million of the net proceeds, which it plans to use for future growth and operational needs. As of December 31, 2025, Magnolia Bancorp had a total equity of $20 million, reflecting a 43.7% increase from the previous year, largely due to the conversion process.
The company’s deposit base saw a significant decline, with total deposits falling by 42.9% to $16.8 million, primarily due to the conversion and the subsequent use of deposits to purchase shares of common stock. Core deposits decreased by 46% to $10.8 million. Magnolia Bancorp aims to grow its core deposits and has emphasized the importance of personalized customer service to maintain a loyal customer base. The company currently employs eight staff members and has no immediate plans for expansion in its workforce.
Looking ahead, Magnolia Bancorp anticipates that the recent reductions in the Federal Reserve's 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 rise as it hires additional personnel and incurs costs associated with being a public company. The management remains focused on maintaining strong asset quality and conservative underwriting standards while exploring opportunities for organic growth and potential branching in the future.
About Magnolia Bancorp, Inc.
Magnolia Bancorp, Inc. is a savings and loan holding company that owns Mutual Savings and Loan Association, a federally regulated institution specializing in residential mortgage lending, construction loans, and deposit services in Louisiana. It offers fixed-rate mortgage products, home equity lines, and deposit accounts, primarily serving Jefferson and St. Tammany Parishes. The company focuses on community banking, asset management, and regulatory compliance within the mortgage and savings sectors.
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