Company: MGNO
Filing Date: 2025-01-03
Form Type: 10-Q/A
Source: 0000927089-25-000009
Chunk: 36

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-01-03
Form: 10-Q/A
Chunk 36
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 a decrease of $59,000 in net interest income, which was partially offset by a $14,000 decrease in income tax expense.

Interest Income.Interest income decreased by $3,000 or 0.8% to $368,000 in the quarter ended September 30, 2024 from $371,000 in the quarter ended September 30, 2023. The decrease in interest income was due to a decrease of $10,000 or 27.0% in other interest on deposits with other banks and cash equivalents, as we used a portion of our excess liquidity to fund deposit outflows. This decrease was partially offset by nominal increases of $6,000 in interest on loans and $1,000 in dividends on FHLB stock.

The increased interest on loans was due to an increase in the average yield to 4.30% in the quarter ended September 30, 2024 compared to 4.11% in the quarter ended September 30, 2023, as the average yield on new loan originations exceeded the average yield on repayments of older loans. The increase in the average loan yield was mostly offset by a decrease of $874,000 or 2.7% in the average loan balance in the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023. Our total loan originations were $190,000 in the quarter ended September 30, 2024 compared to no loan originations in the quarter ended September 30, 2023.

The increased dividends on our FHLB stock were primarily due to an increase in the average yield on this stock to 5.76% in the quarter ended September 30, 2024 compared to 4.86% in the quarter ended September 30, 2023. In addition, the average outstanding balance increased by $18,000 or 5.5% in the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023, as we were required to purchase additional FHLB stock in connection with our increase in FHLB advances.

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Interest Expense.Total interest expense increased by $56,000 or 109.8% to $107,000 for the three months ended September 30, 2024 from $51,000 for the three months ended September 30, 2023. The increase was primarily due to the increase in the