I am a big fan of the second. It's much more vibrant and attractive.
However, I'm not a fan of the "Magnolia Banner News" design.

Maybe instead lighten up the black in "Magnolia" to a dark grey.
And I'm not sure how this would look but possibly use the same font as in "Columbia's Oldest Established..." for the "Banner News" bit.

One other thing... this is just me being picky... but tighten the kearning between the "B" and the "A" in "Banner". They look too spread apart.

Hope this helps!