Business Description

BUSINESS OF MAGNOLIA BANCORP, INC. Magnolia Bancorp, Inc. (“Magnolia Bancorp” or the “Company”) was incorporated by Mutual Savings and Loan Association (“Mutual Savings” or the “Association”) in May 2024 as part of the conversion of Mutual Savings from the mutual to the stock form of organization (the “Conversion”). The Conversion was completed on January 14, 2025, at which time the Company acquired all of the issued and outstanding shares of common stock of the Association and the Association became a wholly owned subsidiary of Magnolia Bancorp. Concurrently with consummation of the Conversion, the Company completed its initial public offering and issued 833,750 shares of its common stock for an aggregate of $8.3 million. Total net proceeds from the offering were approximately $6.9 million (including shares issued to the Company’s employee stock ownership plan (“ESOP”)). The Company contributed 50% of the net proceeds from the stock offering to the Association. The Company retained the remainder of the net proceeds from the stock offering and used $667,000 to make a loan to the ESOP. Upon the completion of the Conversion, Magnolia Bancorp became the savings and loan holding company of Mutual Savings and Loan Association and is authorized to pursue other business activities permitted by applicable laws and regulations. See “Regulation and Supervision – Holding Company Regulation” for a discussion of the activities that are permitted for savings and loan holding companies. The Company’s cash flow depends on earnings from the investment of the net proceeds from the stock offering that it retains, and any dividends received from Mutual Savings and Loan Association. Mutual Savings and Loan Association is subject to regulatory limitations on the amount of dividends that it may pay. See “Regulation and Supervision – Federal Banking Regulation – Capital Distributions.” Magnolia Bancorp neither owns nor leases any property, but instead uses the premises, equipment and furniture of Mutual Savings and Loan Association. The Company employs only persons who are officers of Mutual Savings and Loan Association to serve as officers of Magnolia Bancorp. However, we periodically use the support staff of Mutual Savings and Loan Association. Magnolia Bancorp may hire additional employees, as appropriate, to the extent it expands its business in the future but currently has no immediate plans to do so. 1 BUSINESS OF MUTUAL SAVINGS AND LOAN ASSOCIATION General Mutual Savings conducts business from our main office in Jefferson Parish and one branch office in St. Tammany Parish. Our loan portfolio consists primarily of fixed-rate one-to-four family residential mortgage loans that we have originated. We also originate residential construction loans and, to a substantially lesser extent, home equity loans, and share loans (loans secured by deposit accounts at Mutual Savings and Loan Association). We originate loans typically for retention in our portfolio. We offer a variety of deposit accounts including checking accounts, savings accounts and certificates of deposit. We currently do not offer electronic banking services such as mobile banking, on-line banking or telephone banking. We are subject to comprehensive regulation and examination by the Office of the Comptroller of the Currency (“OCC”), our primary federal regulator. Our main office is located at 2900 Clearview Pkwy., Metairie, Louisiana 70006, and the telephone number is (504) 455-2444. Our website address is www.mutualsavings.com. Information on our website is not incorporated into this annual report on Form 10-K and should not be considered part of this annual report on Form 10-K. Market Area We consider Jefferson and St. Tammany Parishes in Louisiana to be our primary market area for originating loans and gathering deposits. Our offices are located in these two parishes, which are bedroom communities of New Orleans. Mutual Savings and Loan Association primarily serves retail customers from its branch network. Management considers sections of these parishes to be demographically attractive and close to the business and financial district of New Orleans. Jefferson and St. Tammany Parishes comprise the 2nd and 4th largest parishes in Louisiana, respectively, in terms of population and number of households. According to published statistics, the New Orleans-Metairie MSA has a population of approximately 1.3 million, with Jefferson and St.…