The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Louisiana mutual to convert to stock-owned company

Mutual Savings and Loan Association in Metairie, La., plans to raise up to $8.2 million by converting to a stock-owned company.

Magnolia Bancorp is offering 616,250 to 833,750 shares of common stock at $10 each. The company could sell up to 958,813 shares if there is sufficient demand.

Net proceeds could range from $4.8 million to $8.2 million.

The $35.5 million-asset Magnolia said it could use proceeds from the offering in a variety of ways that could including investing in securities, buying back stock, paying dividends or opening branches.

The bank lost $24,000 in the first half of 2024. Total loans fell by 6% from the end of 2022. The filing noted that demand for the bank’s fixed-rate mortgages fell as interest rates increased.

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