8-K: Magnolia Bancorp Announces Closing Date of Initial Public Offering Following Regulatory Approval

Magnolia Bancorp, Inc. announces the expected closing date of its initial public offering as January 14, 2025, with trading on the OTCQB Market anticipated to begin on January 15, 2025.

Summary

• Magnolia Bancorp, Inc., the holding company for Mutual Savings and Loan Association, has received all final regulatory approvals for its conversion from a federally chartered mutual savings and loan association to a federally chartered stock savings and loan association.
• The conversion and stock offering are expected to close on January 14, 2025.
• The company's common stock is expected to be quoted on the OTCQB Market under the symbol 'MGNO' starting January 15, 2025.
• Magnolia Bancorp plans to sell 833,750 shares of common stock, including 66,700 shares for the Employee Stock Ownership Plan, at $10.00 per share, projecting gross proceeds of approximately $8.3 million.
• The stock offering was oversubscribed, and valid stock orders are expected to be filled according to the plan of conversion.
• Direct Registration System (DRS) Book-Entry statements and refund checks are planned to be mailed around January 15, 2025.
• Mutual Savings and Loan Association, founded in 1885, had total assets of $35.1 million, total deposits of $20.4 million, and equity of $14.0 million as of September 30, 2024.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful completion of regulatory approvals and the oversubscribed stock offering. The company is moving forward as planned with its conversion and IPO.

Positives

• All regulatory approvals have been received, clearing the way for the conversion and IPO.
• The stock offering was oversubscribed, suggesting strong investor demand.
• The company has a long history, with Mutual Savings and Loan Association being founded in 1885.
• The company is selling 66,700 shares to the Companys Employee Stock Ownership Plan.

Risks

• The press release mentions forward-looking statements are subject to business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control.
• The company cautions undue reliance on any such forward looking statements, which speak only as of the date made.
• The company disclaims any obligation to publicly release any revision made to any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Future Outlook

The company anticipates the closing of the conversion and stock offering on January 14, 2025, and the commencement of trading on the OTCQB Market on January 15, 2025. The company plans to sell 833,750 shares of common stock at $10.00 per share.

Management Comments

• Michael L. Hurley, President and Chief Executive Officer, is the contact person for further information.

Industry Context

This announcement reflects a trend of mutual savings and loan associations converting to stock savings associations to raise capital and enhance growth opportunities. This conversion allows Mutual Savings and Loan Association to access public markets for funding and potentially expand its operations.

Comparison to Industry Standards

• Community banks and thrifts often pursue IPOs on the OTCQB market as a stepping stone to larger exchanges.
• The $10 per share offering price is typical for community bank IPOs.
• Keefe, Bruyette & Woods, A Stifel Company, is a well-known advisor in the financial services sector, particularly for community banks and thrifts.

Stakeholder Impact

• Shareholders will receive DRS Book-Entry statements for their purchased shares.
• Employees participating in the ESOP will receive shares.
• Customers of Mutual Savings and Loan Association will see the bank operate under a new corporate structure.
• The community will have the opportunity to invest in the newly formed Magnolia Bancorp.

Next Steps

• Closing of the conversion and stock offering on January 14, 2025.
• Commencement of trading on the OTCQB Market on January 15, 2025.
• Mailing of DRS Book-Entry statements and refund checks around January 15, 2025.

Key Dates