Company: MGNO
Filing Date: 2025-01-03
Form Type: 10-Q/A
Source: 0000927089-25-000009
Chunk: 37

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-01-03
Form: 10-Q/A
Chunk 37
---
 average cost of deposits to 1.94% for the quarter ended September 30, 2024 from 0.84% for the quarter ended September 30, 2023, reflecting the higher market interest rate environment. The higher cost of deposits was partially offset by a $1.6 million or 7.1% decrease in the average outstanding balance of deposits to $20.6 million in the quarter ended September 30, 2024 from $22.2 million in the quarter ended September 30, 2023. The decrease in average deposits was due to decreases of $300,000 or 2.8% in the average balance of certificates of deposit and $1.3 million or 11.1% in the average balance of core deposits. At September 30, 2024, $9.7 million or 95% of our total certificates of deposit were scheduled to mature within the following 12 months. Approximately 99.5% of our certificates of deposit at September 30, 2024 had a remaining maturity of less than 24 months. We shortened the average maturity of our certificates of deposit in anticipation of market interest rates beginning to decline.

The interest on our certificates of deposit increased to $98,000 in the quarter ended September 30, 2024 from $44,000 in the quarter ended September 30, 2023. This increase of $54,000 was due to the average rate paid on certificates of deposit increasing to 3.78% in the quarter ended September 30, 2024 from 1.65% in the quarter ended September 30, 2023, reflecting higher market rates of interest. On September 18, 2024, the Federal Reserve Board decreased its federal funds rate by 0.50%, which was the first decrease in four years. Additional rate reductions in the coming months by the Federal Reserve Board are widely expected by the market. If the Federal Reserve Board continues to reduce its federal funds rate and market interest rates on new certificates of deposit decrease from current levels, we expect these rate reductions will eventually result in declines in our cost of funds. The higher rate paid in 2024 was partially offset by a $300,000 or 2.8% decrease in the average balance of certificates of deposit in the quarter ended September 30, 2024 from the quarter ended September 30, 2023, as we used short-term FHLB advances to a greater extent in the quarter ended