Company: MGNO
Filing Date: 2025-01-03
Form Type: 10-Q/A
Source: 0000927089-25-000009
Chunk: 35

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-01-03
Form: 10-Q/A
Chunk 35
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.Non-interest expense decreased by $55,000, or 5.7%, to $902,000 for the first nine months of 2024 compared to $957,000 for the first nine months of 2023. The decrease in noninterest expense in the first nine months of 2024 was primarily due to deceases of $30,000 or 5.0% in salaries and employee benefits, $10,600 or 82.1% in advertising expense, $8,700 or 32.9% in automobile depreciation and expense, and $3,700 or 8.3% in audit and regulatory examination fees. The decrease in salaries and employee benefits in the first nine months of 2024 was primarily due to the resignation of our former chief financial officer/chief loan officer in May 2023. We hired an additional loan officer in October 2024, and we believe we will need to hire additional personnel following completion of the conversion. These new hires will increase our salaries and employee benefits expenses. Advertising expense decreased in the first nine months of 2024 as we were not actively seeking new certificates of deposit in the current interest rate environment. The decrease in automobile expense in the first nine months of 2024 was primarily due to the absence of the automobile allowance and related automobile costs paid to our former chief financial officer in the first nine months of 2023.

Income Tax Provision (Benefit).We had an income tax benefit of $16,667 for the first nine months of 2024 compared to a provision for income taxes of $22,000 for the first nine months of 2023. The tax benefit in the first nine months of 2024 represented an effective tax rate of 21.8% on our pre-tax loss of $76,000 for such period, while the tax provision for the first nine months of 2023 represented an effective tax rate of 21.5% on our pre-tax income of $102,000 for such period. At September 30, 2024 and December 31, 2023, we had a net deferred tax liability of $48,000.

Comparison of Operating Results for the Three Months Ended September 30, 2024 and 2023

General.We had a net loss of $36,000 for the quarter ended September 30, 2024 compared to net income of $16,000 for the quarter ended September 30, 2023. This $52,000 decline was primarily due to