Company: MGNO
Filing Date: 2025-08-14
Form Type: DEF 14A
Source: 0000927089-25-000145
Chunk: 23

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-08-14
Form: DEF 14A
Chunk 23
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 may vary in individual circumstances. Finally, the consequences under applicable state and local income tax laws may not be the same as under the federal income tax laws.

Accounting Treatment.Magnolia Bancorp will recognize the cost of services received in share-based payment transactions, including the Stock Option Plan, and measure the cost on the grant-date fair value of the award. That cost will be recognized over the period during which an optionee is required to provide service in exchange for the award.

Shareholder Approval. No options will be granted under the Stock Option Plan unless the Stock Option Plan is approved by shareholders. Shareholder approval of the Stock Option Plan will also satisfy the federal tax requirements.

Options to be Granted. The Board of Directors of Magnolia Bancorp adopted the Stock Option Plan, and the committee established thereunder intends to meet promptly after approval by shareholders to determine the specific terms of options, including the allocation of options to executive officers, employees and non-employee directors of Magnolia Bancorp and Mutual Savings. As of the date hereof, no specific determination has been made as to allocation of grants. Because we do not have any stock option plans currently in effect, the Board of Directors has not yet adopted a policy regarding the timing of grants in relation to the disclosure of material nonpublic information, but such a policy is expected to be adopted if shareholders approve the Stock Option Plan.

<div align='center'>The Board of Directors recommends that you voteFORadoption

of the 2025 Stock Option Plan.

16</div>

| PROPOSAL TO ADOPT THE 2025 RECOGNITION AND          
 RETENTION PLAN AND TRUST AGREEMENT (Proposal Three) |

General

On July 24, 2025, the Board of Directors adopted the 2025 Recognition and Retention Plan and Trust Agreement, the objective of which is to enable Magnolia Bancorp to provide officers, employees and non-employee directors of Magnolia Bancorp and Mutual Savings with a proprietary interest in Magnolia Bancorp and as an incentive to contribute to our success. Officers, employees and non-employee directors of Magnolia Bancorp and Mutual Savings who are selected by the Board of Directors of Magnolia Bancorp or members of a committee appointed by the board will be eligible to receive benefits under the Recognition and Retention Plan. If shareholder approval is obtained, shares will be granted to officers, employees and non-employee directors as determined by the committee or the Board of Directors.

Description of the Recognition and Retention Plan

The following description of the Recognition