Company: MGNO
Filing Date: 2025-01-03
Form Type: 10-Q/A
Source: 0000927089-25-000009
Chunk: 38

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-01-03
Form: 10-Q/A
Chunk 38
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 September 30, 2024. The non-interest-bearing deposits included in our core deposits decreased to $1,045,300 at September 30, 2024 from $855,000 at December 31, 2023.

Interest on FHLB advances was $7,000 during the quarter ended September 30, 2024 compared to $5,000 in the quarter ended September 30, 2023, as the average balance of outstanding FHLB advances was $496,000 in the quarter ended September 30, 2024 compared to $319,000 in the quarter ended September 30, 2023. We increased our short-term FHLB advances in lieu of paying higher rates on longer term certificates of deposit in anticipation of the Federal Reserve Board cutting interest rates. All of our outstanding FHLB advances during the period were repaid upon maturity prior to September 30, 2024.

Net Interest Income.Net interest income decreased by $59,000, or 18.4%, to $261,000 for the quarter ended September 30, 2024 compared to $320,000 for the quarter ended September 30, 2023. The decrease was primarily due to our average interest rate spread declining to 2.34% in the quarter ended September 30, 2024 from 3.26% in the quarter ended September 30, 2023, as the average rates paid on our deposits and FHLB advances increased substantially faster than the average yield on our loan portfolio. Although the average yield on interest-earning assets increased from 4.17% in the quarter ended September 30, 2023 to 4.36% in the quarter ended September 30, 2024, it was more than offset by an increase in the average rate paid on interest-bearing liabilities, which increased from 0.91% in the quarter ended September 30, 2023 to 2.03% in the quarter ended September 30, 2024. In addition, our net interest-earning assets decreased by $423,000 or 3.2% in the quarter ended September 30, 2024 from the quarter ended September 30, 2023.

Provision for Credit Losses.We had $0 provision for credit losses in both the quarter ended September 30, 2024 and the quarter ended September 30, 2023. In September 2024, we foreclosed on our one loan that was