Company: MGNO
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000927089-25-000061
Chunk: 101

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 6
Chunk 101
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olia Bancorp is responsible for establishing and maintaining an adequate system of internal control over financial reporting. An adequate system of internal control encompasses the processes and procedures that have been established by management to:

      ● 
      Maintain records that accurately reflect Magnolia Bancorp’s transactions; 

      ● 
      Prepare financial statements and footnote disclosures in accordance with GAAP that can be relied upon by external users; 

      ● 
      Prevent and detect unauthorized acquisition, use or disposition of Magnolia Bancorp’s assets that could have a material effect of the financial statements. 

Management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of Magnolia Bancorp’s controls over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013. Based on our evaluation under the framework in Internal Control – Integrated Framework, management concluded that Magnolia Bancorp’s internal control over financial reporting was not effective as of December 31, 2024. Furthermore, during our assessment of our internal controls for 2024, we determined that the material weaknesses identified in the prospectus dated November 8, 2024, related to 2023 and 2022 as described below remain material weaknesses until the applicable controls operate for a sufficient period of time for management to test the results for operating effectiveness. We intend to continue to provide testing and reporting of the internal controls to ensure operating effectiveness. We believe these actions and any other that we may determine need to be implemented, when complete, will remediate the control weaknesses.

(c) No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities Exchange Act of 1934) occurred during the fourth fiscal quarter of fiscal 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Previously Disclosed Material Weakness in Internal Control Over Financial Reporting

The Company previously disclosed in its prospectus dated November 8, 2024 that Mutual Savings and Loan Association had identified material weaknesses in its internal control over financial reporting with respect to its allowance for credit losses that existed as of December 31, 2023 and 2022. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual