Company: MGNO
Filing Date: 2025-01-03
Form Type: 10-Q/A
Source: 0000927089-25-000009
Chunk: 44

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-01-03
Form: 10-Q/A
Chunk 44
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 obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans, and to a lesser extent borrowings. We have the ability to borrow from the Federal Home Loan Bank of Dallas. At September 30, 2024 all advances outstanding during the period matured and were paid.

While maturities and scheduled amortization of loans are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing and lending activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For the nine months ended September 30, 2024, cash flows from operating, investing and financing activities resulted in a net decrease in cash and cash equivalents of $83,000 or 4.8% from December 31, 2023. This decrease was due to financing activities using $643,000 of cash, operating activities using $614,000 of cash offset by $1,174,000 of cash provided by investing activities. Financing activities used $497,000 of cash to fund deposit outflows and by a $500,000 decrease in FHLB advances offset by a $354,000 increase in advances from borrowers for insurance and taxes. The cash used by operating activities primarily related to a $586,000 increase in other assets, of which $558,000 was deferred conversion costs incurred in the nine months ended September 30, 2024. Investing activities provided $1,174,000 of cash in the first nine months of 2024 due to a decrease in our net loan portfolio. The net decrease in cash and cash equivalents in the nine months ended September 30, 2024 was consistent with our overall decline in total assets, as our total assets declined by $698,000 in the first nine months of 2024 compared to December 31, 2023.

We believe we maintain a strong liquidity position, and we are committed to maintaining it. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing