Magnolia Bancorp Reports $134,000 Net Loss for Six Months Ended June 30, 2026

Magnolia Bancorp, Inc. reported a net loss of $134,000 for the six months ended June 30, 2026, compared to a net loss of $66,000 for the same period in 2025. The company's total interest income decreased by 3.3% to $779,000, primarily due to a significant drop in other interest income, which fell by $51,000. This decline was offset by a $24,000 increase in loan interest and fee income, attributed to higher average yields on new loan originations. Total interest expense also decreased by 30.8% to $99,000, reflecting a reduction in the amount and yield on certificates of deposit.

In terms of financial position, total assets decreased by 3.9% to $35.9 million as of June 30, 2026, down from $37.4 million at the end of 2025. Cash and cash equivalents fell by 13.9% to $3.9 million, primarily due to a decrease in total deposits, which dropped by 9.1% to $15.3 million. The decline in deposits was largely driven by a $1.6 million reduction in interest-bearing demand deposits. Loans receivable, net, also saw a decrease of 2.1%, falling to $30.1 million, as paydowns outpaced new originations.

Operationally, Magnolia Bancorp has focused on maintaining a strong liquidity position, with management monitoring liquidity daily to ensure sufficient funds for current commitments. The company has $2.2 million in outstanding commitments to originate loans, including $1.1 million in revolving lines of credit and $1.1 million in residential construction loans. The company continues to emphasize growth in consumer deposits, although market conditions have posed challenges to this strategy.

Strategically, Magnolia Bancorp has made organizational changes, including the hiring of a new President in June 2026, with the former President transitioning to the role of Executive Chairman. This change is part of the company's ongoing efforts to enhance its leadership structure. Additionally, the company has incurred higher noninterest expenses, primarily due to increased salaries and employee benefits, which rose by $87,000 compared to the previous year.

Looking ahead, Magnolia Bancorp anticipates continued challenges in loan demand due to prevailing market conditions affecting homeownership affordability. The company plans to maintain its focus on originating fixed-rate one-to-four family residential mortgage loans while also managing its operational costs and enhancing its deposit base. The outlook remains cautious as the company navigates the impacts of economic fluctuations and regulatory requirements.