MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS FOR 6TH CONSECUTIVE YEAR INCREASES DIVIDEND BY 25%

Palos Verdes Estates, CA – January 19, 2012 – Malaga Financial Corporation (MLGF.OB), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2011 was $2,906,000 ($0.50 basic and fully diluted earnings per share), an increase of $192,000 or 7% from net income of $2,714,000 ($0.46 basic and fully diluted earnings per share) for the quarter ended December 31, 2010. Net income for the twelve months ended December 31, 2011 was $11,115,000 ($1.90 basic and $1.89 fully diluted earnings per share) as compared to $10,494,000 ($1.80 basic and $1.78 fully diluted earnings per share) for the twelve months ended December 31, 2010, a 6% increase. Earnings for the fourth quarter and twelve months were the highest in Malaga’s history for those periods and resulted in a pre-tax return on average equity of 25.05%.

The Company did not have any delinquent loans or foreclosed real estate owned at December 31, 2011. The Company’s allowance for loan losses was $2,881,000, or 0.36% of total loans, at December 31, 2011.

For 2011, net interest income totaled $28,977,000, an increase of $1,505,000 or 5% from 2010. This increase resulted primarily from an increase of 0.18% in the interest rate spread to 3.45%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.34%, which exceeded the 0.16% decline in the weighted average yield on interest earning assets. The decrease in the average cost of funds was due to maturity and repricing of certificates of deposits at lower rates and decrease in the outstanding Federal Home Loan Bank borrowings in the amount of $23,000,000 at higher interest rates.

Operating expenses remained stable with a nominal increase of $91,000 to $10,305,000 from $10,214,000 in 2010.

Randy C. Bowers, President and CEO, remarked, “We are pleased to continue to report record earnings which along with our strong capital position has allowed us to significantly increase dividends to our shareholders. Our results for both the 4th quarter and year 2011 reflect the disciplined execution of our business plan emphasizing high asset quality, strong cost control and modest growth during a period of uncertain economic conditions.”

Malaga’s total assets increased $13.1 million or 2% to $827 million at December 31, 2011. The loan portfolio at December 31, 2011 was $795 million, an increase of $26 million or 3% from December 31, 2010. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $491 million as of December 31, 2011, a $24 million or 5% increase from $467 million at December 31, 2010. The retail deposit growth was used to partially repay FHLB borrowings, which decreased $23 million or 12% from $192 million at December 31, 2010 to $169 million at December 31, 2011.

As of December 31, 2011, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 12.39% and 20.20%, respectively, at December 31, 2011, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 12.5 cents per share, payable in January 2012. This dividend reflected a 25% increase in the quarterly dividend amount in effect for the past six quarters.

Mr. Bowers concluded, “We are honored that, earlier this year, we were recognized by both US Banker magazine and SNL Financial for our overall financial performance. In addition, for over ten years, Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, BauerFinancial Inc. Again this quarter, Malaga Bank received their premier Top 5-Star rating. This recognition is a direct result of the contributions of our dedicated staff and board of directors, in addition to our loyal shareholders and customers.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 27th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES 25% INCREASE IN DIVIDEND

PALOS VERDES ESTATES. CALIF.- December 15, 2011 - Malaga Financial Corporation (OTCBB:MLGF) The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 12½ cents per share to shareholders of record on Jan. 3, 2012. The dividend will be paid out on or about Jan. 5, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased to announce a dividend increase which rewards the loyalty and support of our shareholders, many of whom have been with us for over 25 years. This is our 30th consecutive quarterly cash dividend and is a result of record earnings and our strong capital position."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD 3rd QUARTER AND YEAR-TO-DATE EARNINGS PRE-TAX ROE 24.87%

PALOS VERDES ESTATES, CA - October 26, 2011 - Malaga Financial Corporation (MLGF.OB), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2011 was $2,749,000 ($0.47 basic and fully diluted earnings per share), an increase of $41,000 or 2% from net income of $2,708,000 ($0.47 basic and $0.46 fully diluted earnings per share) for the quarter ended September 30, 2010. Net income for the nine months ended September 30, 2011 was $8,209,000 ($1.40 basic and $1.39 fully diluted earnings per share) as compared to $7,780,000 ($1.34 basic and $1.32 fully diluted earnings per share) for the nine months ended September 30, 2010, a 6% increase. Earnings for the third quarter and first nine months were the highest in Malaga’s history for those periods.

The Company did not have any foreclosures or real estate owned at September 30, 2011. The Company’s allowance for loan losses was $2,857,000, or 0.36% of total loans, at September 30, 2011.

Net interest income totaled $7,169,000 in the third quarter of 2011, up $186,000 or 3% from the third quarter of 2010. This increase resulted primarily due to an increase of 0.10% in the interest rate spread to 3.42%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.33%, which exceeded the 0.23% decline in the weighted average yield on interest earning assets.

Operating expenses remained stable with a nominal increase of $9,000 in the third quarter of 2011, to $2,570,000 from $2,561,000 in the third quarter of 2010.

Randy C. Bowers, President and CEO, remarked, “We are pleased to continue to report record earnings. Our results for both the 3rd quarter and year-to-date 2011 reflect the disciplined execution of our business plan emphasizing high asset quality, strong cost control and modest growth during a period of uncertain economic conditions.”

Malaga’s total assets were stable at $821 million at September 30, 2011 and 2010. The loan portfolio at September 30, 2011 was $787 million, an increase of $24 million or 3% from September 30, 2010. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $488 million as of September 30, 2011, a $21 million or 4% increase from $467 million at September 30, 2010. The retail deposit growth was used to partially repay wholesale deposits and FHLB borrowings, which decreased $30 million or 12% from $255 million at September 30, 2010 to $225 million at September 30, 2011. The weighted average cost of funds for the third quarter of 2011 was 1.69% versus 2.02% for the third quarter of 2010.

As of September 30, 2011, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 12.24% and 20.05%, respectively, at September 30, 2011, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

Mr. Bowers concluded, “We are honored that, earlier this year, we were recognized by both US Banker magazine and SNL Financial for our overall financial performance. In addition, for over ten years, Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, BauerFinancial Inc. Again this quarter, Malaga Bank received their premier Top 5-Star rating. This recognition is a direct result of the contributions of our dedicated staff and board of directors, in addition to our loyal shareholders and customers.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 27th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA BANK ANNOUNCES WINNERS OF GIVES BACK! $5K SWEEPSTAKES

PALOS VERDES ESTATES, CA - October 7, 2011 Mr. Randy Bowers, President & CEO of Malaga Bank, today announced the winners of the bank-sponsored sweepstakes that ran from July 1 through September 30, 2011 with a total cash prize of $5,000.

"The goal of the $5,000 sweepstakes was to give back to both our neighbors and community partners," Mr. Bowers said. "The individual winner along with the charity of their choice will each receive a check for $2,500."

The individual winner is Mr. Melvyn Frumes of Torrance, CA.

Pediatric Therapy Network (PTN) of Torrance, CA is the charity selected by Mr. Frumes to share the $5,000 sweepstakes prize. A Torrance-based organization founded in 1996, PTN is a non-profit children's therapy center dedicated to providing quality services for children with special needs. PTN services over 1,230 children each week, offering physical, occupational, and speech-language therapies.

"We are pleased to present the Gives Back $5K Sweepstakes winnings to Mr. Frumes, a Malaga Bank customer for 25 years, and Pediatric Therapy Network, which is a prominent South Bay charity," Mr. Bowers concluded. "We celebrate in advance the meaningful contribution these winnings will bring to PTN's good work for the special needs children of the South Bay."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and in San Pedro. For over 26 years Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate and business loan products custom-tailored to consumers, investors and small business owners. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of excellent financial performance, relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Susan Negrete
Marketing
Malaga Bank
(310) 375-9000, ext. 2010
snegrete@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES 29th CONSECUTIVE CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-September 30, 2011- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on Oct. 14, 2011. The dividend will be paid out on or about Oct. 18, 2011. Randy C. Bowers, President and CEO, remarked, "We appreciate the loyalty and support of our shareholders and are delighted to reward them with our 29th consecutive quarterly cash dividend."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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Malaga Bank announces sweepstakes that gives back to the community.

Palos Verdes Estates, CA - July 1, 2011 - Mr. Randy Bowers, President & CEO of Malaga Bank today announced a bank-sponsored sweepstakes that runs from July 1 through September 30, 2011 with a total cash prize of $5,000.00.

"The goal of the $5,000.00 sweepstakes is to give back to both our neighbors and community partners," Mr. Bowers said. "The individual winner and the charity of their choice will each receive $2,500.00. It's a simple way to help those who may be struggling in these difficult economic times."

The Malaga Bank Gives Back! Sweepstakes offers a chance for individuals to win $2,500.00 and to select a local charity to win $2,500.00 for a total cash amount of $5,000.00.

Entrants must be legal residents of California who are 18 years of age or older; Malaga Bank employees and their immediate family members (spouse, parent, child and sibling) are not eligible to enter or win. Entrants do not have to be Malaga Bank customers. The charity selected must be in a community served by Malaga's retail banking business (Palos Verdes Peninsula, Rolling Hills Estates, San Pedro or Torrance).

Mr. Bowers emphasized that the sweepstakes was designed to be as simple as possible - no bank products or services are required to be opened or purchased and entrants don't have to be a Malaga Bank customer to enter or win.

"All the sweepstakes requires is visiting one of our four Malaga Bank branches and filling out a registration form," Mr. Bowers concluded. "It truly is a $5,000 'ENTER TO WIN' opportunity!"

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and in San Pedro. For over 26 years Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate and business loan products custom-tailored to consumers, investors and small business owners. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. Come and experience the Malaga Bank difference. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD 2ND QUARTER AND YEAR-TO-DATE EARNINGS

Palos Verdes Estates, CA - July 15, 2011 - Malaga Financial Corporation (OTCBB:MLGF), ), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2011 was $2,748,000 ($0.47 basic and $0.46 fully diluted earnings per share), an increase of $116,000 or 4% from net income of $2,632,000 ($0.45 basic and $0.44 fully diluted earnings per share) for the quarter ended June 30, 2010. Net income for the six months ended June 30, 2011 was $5,460,000 ($0.93 basic and $0.92 fully diluted earnings per share) as compared to $5,072,000 ($0.87 basic and $0.86 fully diluted earnings per share) for the six months ended June 30, 2010, an 8% increase. Earnings for the second quarter and first six months were the highest in Malaga Financial's history for those periods.

The Company did not have any delinquent loans or real estate owned at June 30, 2011. The Company's allowance for loan losses was $2,837,000, or 0.36% of total loans, at June 30, 2011.

Net interest income totaled $7,125,000 in the second quarter of 2011, up $238,000 or 3% from the second quarter of 2010. This increase resulted from a $5 million or 1% increase in average interest earning assets to $802 million, and an increase of 0.10% in the interest rate spread to 3.42%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.28%, which exceeded the 0.18% decline in the weighted average yield on interest earning assets.

Operating expenses remained stable with a small increase of 1% in the second quarter of 2011, to $2,583,000 from $2,562,000 in the second quarter of 2010.

Randy C. Bowers, President and CEO, remarked, "We are pleased to continue to report record earnings in spite of ongoing weak economic conditions. The hard work of our staff and disciplined execution of our business plan has produced exceptional results, as evidenced by our annualized return on average equity of 14.69% and our lack of delinquent loans or foreclosures."

Malaga's total assets reached $824 million at June 30, 2011 compared to $818 million at June 30, 2010. The loan portfolio at June 30, 2011 was $781 million, an increase of $10 million or 1% from June 30, 2010. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $487 million as of June 30, 2011, a $28 million or 6% increase from $459 million at June 30, 2010. The retail deposit growth was used to repay wholesale deposits and FHLB borrowings, which decreased $31 million or 12% from $264 million at June 30, 2010 to $232 million at June 30, 2011. The weighted average cost of funds for the second quarter of 2011 was 1.80% versus 2.08% for the second quarter of 2010.

As of June 30, 2011, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 11.92% and 19.62%, respectively, at June 30, 2011, significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Mr. Bowers concluded, "We are also delighted to announce being recognized by SNL Financial, an information services company, as the top performing thrift in the United States for the 12-month period ended March 31, 2011 out of the 100 largest publicly traded thrifts. This is the second consecutive year that we have received this number one ranking. "

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 27th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION RANKED THE #1 THRIFT IN THE U.S. FOR THE SECOND CONSECUTIVE YEAR!

Palos Verdes Estates, CA – July 14, 2011 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced it has been ranked the top-performing thrift in the United States for the most recent 12-month period ending March 31, 2011 for the second consecutive year. SNL Financial ranked the 100 largest publicly traded thrifts according to six performance metrics, with standard deviations weighted and added together to calculate a performance score for each company. The higher the score, the better the final ranking with Malaga coming out #1 in the nation. For example, according to the six metrics — core return on average assets (ROAA); core return on average equity (ROAE); three-year compound annual growth rate in tangible book value per share; efficiency ratio; non-performing loans and net charge-offs — Malaga received a score of 134.22 which surpassed the #2 ranking — coming in at 127.12 — by over 7 points! In fact, Malaga ranked in the top three in five of the six metrics.

“We are extremely pleased with this recognition which can be attributed to the hard work of our staff and the guidance of our Board of Directors. The disciplined execution of our business plan has produced exceptional results, as evidenced by our annualized return on average equity of 14.69% for the first 6 months of 2011 and our lack of delinquent loans and foreclosures,” commented Randy Bowers, President and CEO.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 27th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES NEW CHAIRMAN OF THE BOARD

PALOS VERDES ESTATES, CALIF.-June 24, 2011- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the election of Jerry Donahue to the position of Chairman of the Board. Mr. Donahue will also serve as Chairman of its subsidiary, Malaga Bank FSB. Mr. Donahue succeeds Robert E. Kershaw, who passed away on June 10, 2011.

Mr. Donahue is a founding director of Malaga Bank and previously served as Chairman of the Board and Chairman of the Loan Committee. Mr. Donahue is a Principal of Del Amo Construction, Inc. in Torrance and a long-time resident of Palos Verdes Estates.

"We are delighted to announce that Jerry will assume the duties of Chairman," said Randy C. Bowers, President and CEO, "and pleased to have such a seasoned businessman leading our Board of Directors. We are fortunate that our entire Board of Directors has served since the opening of Malaga Bank in 1985. Their consistent leadership ensures our long-term stability as we continue to build on our existing success. Our recent ranking by US Banker as the top performing publicly traded community bank in California and the 15th best performing publicly traded community bank in the United States as of December 31, 2010 is evidence of the Board's effective governance and direction."

For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-June 21, 2011- Malaga Financial Corporation (OTCBB:MLGF).The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on July 6, 2011. The dividend will be paid out on or about July 7, 2011. Randy C. Bowers, President and CEO, remarked, "We are pleased to have been ranked by US Banker as the top performing publicly traded community bank in California as of Dec. 31, 2010. We appreciate the loyalty of our shareholders and are delighted to reward them with our 28th consecutive quarterly cash dividend."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION AND MALAGA BANK RANKED TOP PERFORMING PUBLICLY TRADED COMMUNITY BANK IN CALIFORNIA

Palos Verdes Estates, CA - June 15, 2011 - Malaga Financial Corporation (OTCBB: MLGF) today announced that US Banker had ranked it and its subsidiary Malaga Bank FSB as the top performing publicly traded community bank in California and the 15th best performing publicly traded community bank in the United States as of December 31, 2010. The rankings included banks and thrifts with less than $2 billion in total assets and whose common stock is traded on a securities exchange, the over the counter bulletin board or the pink sheets. Rankings were based on the 3-year average return on equity, using data provided by SNL Financial. Of the top 200 ranked banks and thrifts, Malaga's profit margin of 62.46% was the highest and its efficiency ratio was the 2nd best of the banks listed.

In general, California financial institutions have been hit hard by declines in the real estate market. Only seven other California banks and thrifts made the US Banker's top 200 list. Malaga's success, according to Randy Bowers, President and CEO, "is a result of our prudent business practices, conservative credit culture and tight expense control. We have benefited greatly from the long term support and guidance of our Board of Directors, as well as the continued loyalty and hard work of all of our employees. Our results speak for themselves."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. For over 26 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD FIRST QUARTER EARNINGS NO DELINQUENT LOANS OR REO

Palos Verdes Estates, CA - April 27, 2011 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2011 was $2,712,000 ($0.46 per share basic and fully diluted), an increase of $272,000 or 11% from net income of $2,440,000 ($0.42 per share basic and fully diluted) for the quarter ended March 31, 2010. Net income increased primarily due to an increase in net interest income. Net income in the first quarter was the highest first quarter net income in the Company's 26-year history.

The Company did not have any delinquent loans or real estate owned at March 31, 2011. The Company's allowance for loan losses was $2,866,000 or 0.37% of total loans, at March 31, 2011.

Net interest income totaled $7,167,000 in the first quarter of 2011, up $525,000 or 8% from the first quarter of 2010. This increase resulted from a $10.4 million or 21% increase in net interest-earning assets over interest-bearing liabilities and increase in net interest spread from 3.15% to 3.38%. The increase in the interest rate spread was due to a 0.09% decline in the weighted average yield on interest earning assets, while the weighted average yield on interest-bearing liabilities declined 0.32%.

Operating expenses increased 2% in the first quarter of 2011, to $2,651,000, from $2,603,000 in the first quarter of 2010. Increased costs resulted primarily from a $44,000 increase in compensation expense.

Randy C. Bowers, President and CEO, remarked, "We are pleased with our ongoing trend of increased quarterly earnings year over year. Our loan portfolio is performing exceptionally well and we continue to maintain tight control over expenses."

Malaga's total assets declined slightly to $817 million at March 31, 2011 compared to $829 million at March 31, 2010. The loan portfolio at March 31, 2011 was $776 million, an increase of $8 million or 1% from March 31, 2010. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $478 million as of March 31, 2011, a $27 million or 6% increase from $451 million at March 31, 2010. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $50 million or 22% from $228 million at March 31, 2010 to $178 million at March 31, 2011. The weighted average cost of funds for the first three months of 2011 was 1.86% versus 2.18% for the first three months of 2010. The decrease was due primarily to lower interest rates paid on retail deposits and an increase in core deposits.

As of March 31, 2011, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 11.75% and 19.29%, respectively, at March 31, 2011 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 26th consecutive quarter.

Mr. Bowers concluded, "Our financial strength has enabled us to significantly increase our customer base as depositors demonstrate their preference to do business with a local bank that actively supports the community."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 27th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-Mar. 25, 2011- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on Apr. 7, 2011. The dividend will be paid out on or about Apr. 12, 2011. Randy C. Bowers, President and CEO, remarked, "We are pleased to have reported our 5th consecutive year of record profits in 2010 and to have been recognized as the #1 performing thrift in the U.S. by SNL Financial. We appreciate the loyalty of our shareholders and are delighted to reward them with our 27th consecutive quarterly cash dividend."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 26 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES SHARE REPURCHASES UNDER ITS STOCK REPURCHASE PROGRAM

PALOS VERDES ESTATES, CA – February 28, 2011 – Malaga Financial Corporation (OTCBB:MLGF) today reported that, through February 28, 2011, it had repurchased 11,859 shares of its Common Stock for a total of $ 209,481.27.

The stock repurchase program commenced in January 2011. Malaga’s Board of Directors adopted the program because of the limited trading in Malaga Common Stock, which can result in a substantial disparity between the bid and ask prices of Malaga Common Stock. This, in turn, can make it difficult for Malaga shareholders to sell their Common Stock in the market, particularly without disruption to the market price or for the full value of their shares.

The program permits Malaga to spend an additional $578,000 to repurchase shares from its shareholders. Shareholders wishing further information about the program should contact Alison Warren, Administrative Officer of Malaga, at (310) 375-9000.

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MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS FOR 5TH CONSECUTIVE YEAR

Palos Verdes Estates, CA – January 26, 2011 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the year ended December 31, 2010 was $10,494,000 ($1.80 per share basic and $1.78 per share fully diluted), an increase of $1,000,000 or 11% from net income of $9,494,000 ($1.65 per share basic and $1.64 per share fully diluted) for the year ended December 31, 2009. This record annual net income resulted in an ROAE of 15.58% for the year and was achieved in spite of the on-going challenging economic and regulatory environment in 2010.

Net income for the fourth quarter was $2,714,000 ($0.46 per share basic and fully diluted) compared to $2,364,000 ($0.41 per share basic and fully diluted) for the fourth quarter of 2009, an increase of 15% and a new quarterly record.

Net income increased in 2010 primarily as a result of a $1,345,000 increase in net interest income due to a continued increase in weighted average interest-earning assets and an increase in interest rate spread from 3.24% in 2009 to 3.27% in 2010.

Malaga continues to have exceptional credit quality and no delinquent loans as of December 31, 2010. Malaga recorded a provision for loan losses of $41,000 in 2010 as compared to $120,000 in 2009. The lower provision in 2010 was attributable to lower net loan growth of $7 million in 2010 versus $35 million in 2009. Malaga’s allowance for loan losses was $2.8 million, or 0.37% of loans, at December 31, 2010.

Operating expenses decreased $245,000 or 2% from $10.5 million in 2009 to $10.2 million in 2010. This decrease was due primarily to a $471,000 decrease in FDIC insurance premiums related to special assessments in 2009, offset by an increase in salaries and related benefits of $147,000 and depreciation of $73,000.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record earnings for the 5th consecutive year. These numbers were achieved in an extremely challenging period and are the result of the hard work of our dedicated employees who provide exceptional service to our loyal clients on a daily basis."

Malaga’s total assets increased slightly to $814 million at December 31, 2010 compared to $811 million at December 31, 2009. The loan portfolio at December 31, 2010 was $769 million, an increase of $7 million or 1% from December 31, 2009. Malaga originates loans principally for its own portfolio and not for sale.

Total deposits were $521 million at December 31, 2010, a 5% increase. The net increase in deposits of $27 million was utilized to reduce FHLB borrowings by $36 million in 2010.

As of December 31, 2010, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 11.52% and 19.40%, respectively, at December 31, 2010 and substantially exceeded the minimum “well-capitalized” requirements of 5% and 10% respectively. In the fourth quarter, Malaga Financial paid a quarterly dividend for the 25th consecutive quarter.

Mr. Bowers concluded, "In 2010, the Company was recognized by SNL Financial as the top-performing thrift in the United States for the most recent 12 month period ending March 31, 2010. As a result of our financial strength, we are able to continue to support and partner with various community organizations, which further improves the communities that we serve."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. Celebrating its 25th anniversary in 2010, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. Come and experience the Malaga Bank difference. The Bank’s web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-Dec. 17, 2010- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on Jan. 3, 2011. According to Randy Bowers, President and CEO, the dividend will be paid out on or about Jan. 5, 2011. This dividend represents the 26th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 25 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS FOR THIRD QUARTER AND YEAR TO DATE

Palos Verdes Estates, CA - October 20, 2010 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2010 was $2,708,000 ($0.47 basic and $0.46 fully diluted earnings per share), an increase of $207,000 or 8% from net income of $2,501,000 ($0.44 basic and $0.43 fully diluted earnings per share) for the quarter ended September 30, 2009. Net income for the nine months ended September 30, 2010 was $7,780,000 ($1.34 basic and $1.32 fully diluted earnings per share) as compared to $7,130,000 ($1.24 basic and $1.23 fully diluted earnings per share) for the nine months ended September 30, 2009, a 9% increase. Earnings for the third quarter and first nine months were the highest in Malaga Financial's history for those periods. Return on average equity for the Company was 15.64% for the nine months ended September 30, 2010.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread.

The Company's allowance for loan losses was $2,814,000, or 0.37% of total loans, at September 30, 2010.

Net interest income totaled $6,983,000 in the third quarter of 2010, up $345,000 or 5% from the third quarter of 2009. This increase resulted from a $28 million or 4% increase in average interest earning assets to $805 million, and an increase of 0.05% in the interest rate spread to 3.35%. The net increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.15%, which exceeded the 0.10% decline in the weighted average yield on interest earning assets.

Operating expenses increased 2% in the third quarter of 2010, to $2,561,000 from $2,501,000 in the third quarter of 2009. Malaga Bank's efficiency ratio, defined as operating expenses to net interest margin plus other operating income, continues to improve and was 37% for the nine months ended September 30, 2010 as compared to 39% for the same period in 2009. The continued improvement is primarily due to maintaining stable levels of operating expenses while increasing net interest margin.

Randy C. Bowers, President and CEO, remarked, "We are pleased to announce record earnings for the third quarter and nine months ended September 30, 2010. With no foreclosures, asset quality remains exceptional while expenses continue to be well controlled. We thank our employees for their contributions and our customers for their business and continued loyalty."

Malaga's total assets reached $821 million at September 30, 2010 compared to $796 million at September 30, 2009. The loan portfolio at September 30, 2010 was $763 million, an increase of $3 million from September 30, 2009. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $467 million as of September 30, 2010, a $105 million or 29% increase from $362 million at September 30, 2009. The robust retail deposit growth was used to repay wholesale deposits, which decreased $32 million, and FHLB borrowings, which decreased $68 million or 25% from $271 million at September 30, 2009 to $203 million at September 30, 2010. The weighted average cost of funds for the third quarter of 2010 was 2.02% versus 2.17% for the third quarter of 2009.

As of September 30, 2010, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 11.18% and 18.90%, respectively, at September 30, 2010, significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 24th consecutive quarter.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. For over 25 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-Oct. 1, 2010- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on Oct. 18, 2010. According to Randy Bowers, President and CEO, the dividend will be paid out on or about Oct. 20, 2010. This dividend represents the 25th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 25 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS AND 25% DIVIDEND INCREASE

Palos Verdes Estates, CA - July 14, 2010 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2010 was $2,632,000 ($0.45 basic and $0.44 fully diluted earnings per share), an increase of $414,000 or 19% from net income of $2,218,000 ($0.39 basic and $0.38 fully diluted earnings per share) for the quarter ended June 30, 2009. Net income for the six months ended June 30, 2010 was $5,072,000 ($0.87 basic and $0.86 fully diluted earnings per share) as compared to $4,629,000 ($0.81 basic and $0.80 fully diluted earnings per share) for the six months ended June 30, 2009, a 10% increase. Earnings for the second quarter and first six months were the highest in Malaga Financial's history for those periods.

The Company also reported its Board of Directors had elected to increase the Company's regular quarterly dividend from $.08 per share to $.10 per share to shareholders of record on July 12, 2010.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread.

The Company did not have any delinquent loans or real estate owned at June 30, 2010. The Company's allowance for loan losses was $2,862,000, or 0.37% of total loans, at June 30, 2010.

Net interest income totaled $6,887,000 in the second quarter of 2010, up $447,000 or 7% from the second quarter of 2009. This increase resulted from a $25 million or 3% increase in average interest earning assets to $797 million, and increase of 0.14% in the interest rate spread to 3.32%. The net increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.31%, which exceeded the 0.17% decline in the weighted average yield on interest earning assets.

Operating expenses decreased 8% in the second quarter of 2010, to $2,562,000 from $2,783,000 in the second quarter of 2009. The decrease is primarily attributable to $324,000 decline in FDIC insurance premiums related to a special assessment of approximately $355,000 in the second quarter 2009.

Randy C. Bowers, President and CEO, remarked, "We are pleased to announce a 25% quarterly dividend increase which is in addition to the increase in our share price during the second quarter. This rewards our loyal shareholders, many who have been with us for 25 years".

Malaga's total assets reached $818 million at June 30, 2010 compared to $793 million at June 30, 2009. The loan portfolio at June 30, 2010 was $771 million, an increase of $12 million or 2% from June 30, 2009. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $459 million as of June 30, 2010, a $126 million or 38% increase from $333 million at June 30, 2009. The robust retail deposit growth was used to repay wholesale deposits and FHLB borrowings, which decreased $118 million or 31% from $382 million at June 30, 2009 to $264 million at June 30, 2010. The weighted average cost of funds for the second quarter of 2010 was 2.08% versus 2.39% for the second quarter of 2009.

As of June 30, 2010, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 10.96% and 18.23%, respectively, at June 30, 2010, significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Mr. Bowers concluded, "We are pleased to have been recognized by SNL Financial, an information services company, as the top-performing thrift in the United States for the 12-month period ended March 31, 2010. Our record profitability can be attributed to the prudent guidance of our board of directors along with the dedicated efforts of our staff to continue to provide our customers with exceptional "local" service".

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. For over 25 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-June 25, 2010- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 10 cents per share to shareholders of record on July 12, 2010. According to Randy Bowers, President and CEO, the dividend will be paid out on or about July 14, 2010. This dividend represents the 24th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 25 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA BANK RANKED #1 THRIFT IN THE U.S.

Palos Verdes Estates, CA - June 23, 2010 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced it has been ranked the top-performing thrift in the United States for the most recent 12 month period ending March 31, 2010. SNL Financial ranked the 100 largest publicly traded thrifts according to six performance metrics, weighted the rankings and gave each institution a final composite score. The higher the score, the better the final ranking with Malaga coming out # 1 in the nation. For example, according to the six metrics-total assets; core return on average assets (ROAA); core return on average equity (ROAE); three-year compound annual growth rate in tangible book value per share; efficiency ratio; nonperforming assets and net charge-offs-Malaga received a score of 95.80 which surpassed the #2 ranking-coming in at 90.70-by over 5 points! In fact, Malaga ranked in the top five in five of the six metrics, with the highest core ROAA and the second highest ROAE. During the ranking period, Malaga also grew deposits (by 28% compared to a median of only 8%) and loans (by 3% compared to a median LOSS of 2% for the group) as well as having a return of over 75% on our common stock!

"We are extremely pleased with this recognition which can be attributed to the long term support and guidance of our Board of Directors, along with the continued loyalty and hard work of all of our employees. Our continued success and # 1 ranking are a result of the disciplined execution of our business plan with its focus on customer service and conservative, prudent business practices", commented Randy Bowers, President and CEO.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. For over 25 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS
RECORD EARNINGS IN FIRST QUARTER 2010
NO DELINQUENT LOANS OR NON-PERFORMING ASSETS

Palos Verdes Estates, CA – April 28, 2010 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2010 was $2,440,000 ($0.42 per share basic and fully diluted), an increase of $29,000 or 1% from net income of $2,411,000 ($0.42 per share basic and fully diluted) for the quarter ended March 31, 2009. Net income increased due to continued growth in interest earning assets and excellent credit quality. Net income in the first quarter was the highest first quarter net income in the Company's 25 year history.

The Company did not have any delinquent loans or non-performing assets at March 31, 2010. The Company's allowance for loan losses was $2,840,000 or 0.37% of total loans, at March 31, 2010.

Net interest income totaled $6,642,000 in the first quarter of 2010, up $160,000 or 2% from the first quarter of 2009. This increase resulted from a $44 million or 6% increase in average interest earning assets to $798 million, partially offset by a 0.07% decrease in the interest rate spread to 3.15%. The decrease in the interest rate spread was due to a 0.51% decline in the weighted average yield on interest earning assets, while the weighted average cost of funds declined only 0.44%.

Operating expenses increased 3% in the first quarter of 2010, to $2,603,000 from $2,524,000 in the first quarter of 2009. Increased costs resulted primarily from $107,000 in salary and related benefits.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record first quarter earnings in spite of the prolonged recessionary environment that has negatively impacted the banking and real estate sectors along with the general economy. Our loan portfolio has continued to perform exceptionally well and our strategic initiatives have proven to be effective during this difficult economic period".

Malaga's total assets reached $829 million at March 31, 2010 compared to $780 million at March 31, 2009. The loan portfolio at March 31, 2010 was $768 million, an increase of $23 million or 3% from March 31, 2009. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $451 million as of March 31, 2010, a $124 million or 38% increase from $327 million at March 31, 2009. The robust retail deposit growth was used to repay wholesale deposits and FHLB borrowings, which decreased $96 million or 25% from $377 million at March 31, 2009 to $281 million at March 31, 2010. The weighted average cost of funds for the first three months of 2010 was 2.18% versus 2.62% for the first three months of 2009.

As of March 31, 2010, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 10.54% and 17.63%, respectively, at March 31, 2010 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 22nd consecutive quarter.

Mr. Bowers concluded, "Our continued focus on financial strength, personalized service and community partnership has provided our customers, shareholders and the community a safe place to bank for 25 years. Our strategy continues to be moderate internal growth combined with prudent loan underwriting and diligent cost control. Malaga Bank remains a five-star rated bank, the highest rating available from Bauer Financial".

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. In its 25th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-Mar. 26, 2010- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on April 9, 2010. According to Randy Bowers, President and CEO, the dividend will be paid out on or about April 14, 2010. This dividend represents the 23rd consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 25 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION
IN ITS 25TH YEAR OF OPERATIONS
REPORTS RECORD EARNINGS WITH A 34% INCREASE FOR 2009

Palos Verdes Estates, CA - February 04, 2010 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the year ended December 31, 2009 was $9,494,000 ($1.65 per share basic and $1.64 per share fully diluted), an increase of $2,418,000 or 34% from net income of $7,076,000 ($1.24 per share basic and fully diluted) for the year ended December 31, 2008. This record annual net income resulted in an ROAE of 16.71% for the year and was achieved in spite of a $1,044,000 increase in FDIC insurance premiums in 2009. Malaga continues to have no non-performing assets or delinquent loans.

Net income for the fourth quarter was $2,364,000 ($0.41 per share basic and fully diluted) compared to $1,930,000 ($0.34 per share basic and fully diluted) for the fourth quarter of 2008, an increase of 22%.

Net income increased in 2009 primarily as a result of a $5,297,000 increase in net interest income due to a $57 million growth in average interest earning assets and an increase in interest rate spread from 2.74% in 2008 to 3.29% in 2009. The interest rate spread increased primarily due to our average cost of funds declining faster than our average yield on interest earning assets.

Malaga recorded a provision for loan losses of $120,000 in 2009 as compared to $329,000 in 2008. The lower provision in 2009 was attributable to lower net loan growth of $35 million in 2009 versus $59 million in 2008. Malaga's allowance for loan losses was $2.8 million, or 0.37% of loans, at December 31, 2009.

Operating expenses increased $1,535,000 or 17% from $8,924,000 in 2008 to $10,459,000 in 2009. This increase was due primarily to a $1,044,000 increase in FDIC insurance premiums. In addition, salaries and related benefits increased $504,000 due primarily to lower cost offset of deferred loan origination costs as a result of lower loan origination volume.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record earnings in our 25th year of operations. Our long-term commitment to prudent underwriting and our focus on loan terms that facilitate the timely repayment of debt has provided our shareholders, customers, employees and the community with one of the strongest community banks in the nation. Our financial strength has allowed us to continue to support and partner with various community organizations that are so important to the communities we serve."

Malaga's total assets reached $811 million at December 31, 2009 compared to $764 million at December 31, 2008. The loan portfolio at December 31, 2009 was $762 million, an increase of $35 million or 5% from December 31, 2008. Malaga originates loans principally for its own portfolio and not for sale.

Total deposits were $494 million at December 31, 2009, a 34% increase. The net increase in deposits of $125 million was utilized to fund net loan growth of $35 million and reduce FHLB borrowings by $94 million in 2009.

In December 2009, in order to obtain funds to increase the regulatory capital of Malaga Bank, Malaga Financial commenced a private offering up to $10 million principal amount of 9.25% Senior Subordinated Notes at par. As of December 31, 2009, Malaga Financial had issued $7,250,000 of the Notes and had contributed the proceeds to Malaga Bank as capital. In January 2010, Malaga Financial issued and additional $2,750,000 of the Notes, completing the offering. The Notes bear interest at a rate of 9.25% per annum, payable quarterly, and are due and payable on the earlier to occur of December 31, 2016 or upon a change of control. The Notes are subordinated to all borrowings (other than the outstanding junior subordinated debentures) and may not be prepaid prior to maturity. The increased regulatory capital at Malaga Bank will enable it to pursue growth opportunities and will provide a further cushion against any losses or reserves on its loan portfolio in this recessionary economy.

As of December 31, 2009, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 10.10% and 17.04%, respectively, at December 31, 2009 and substantially exceeded the minimum "well-capitalized" requirements of 5% and 10% respectively. In the fourth quarter, Malaga Financial paid a quarterly dividend for the 21st consecutive quarter.

Mr. Bowers concluded, "With our increased capital levels, Malaga Bank is well positioned to take advantage of growth opportunities that may become available in our market areas. The Bank continues to receive a five-star rating, the highest rating available from Bauer Financial and has recently been awarded the "Best Professional Business for 2009" by the Palos Verdes Chamber of Commerce.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. Celebrating its 25th anniversary in 2010, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. Come and experience the Malaga Bank difference. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-Dec. 21, 2009- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on January 8, 2010. According to Randy Bowers, President and CEO, the dividend will be paid out on or about January 12, 2010. This dividend represents the 22nd consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 24 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD QUARTERLY EARNINGS AND NO DELINQUENT LOANS OR NON-PERFORMING ASSETS

Palos Verdes Estates, CA - October 9, 2009 - Malaga Financial Corporation (OTCBB: MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2009 was $2,501,000 ($0.44 basic and $0.43 fully diluted earnings per share), an increase of $718,000 or 40% from net income of $1,783,000 ($0.31 per share basic and fully diluted) for the quarter ended September 30, 2008. This was the highest quarterly net income in Malaga's history. Net income for the nine months ended September 30, 2009 was $7,130,000 ($1.24 basic and $1.23 fully diluted earnings per share) as compared to $5,146,000 ($0.90 basic and fully diluted earnings per share) for the nine months ended September 30, 2008, a 39% increase.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread.

Despite the continuing deterioration of the real estate market in Southern California, Malaga did not have any delinquent loans or non-performing assets at September 30, 2009. The Company's allowance for loan losses at September 30, 2009 was $2,834,000 or 0.37% of total loans.

Net interest income totaled $6,638,000 in the third quarter of 2009, up $1,392,000 or 27% from the third quarter of 2008. This increase resulted from a $61 million or 9% increase in average interest earning assets to $766 million and a 0.59% increase in the interest rate spread to 3.28%. The improvement in the interest rate spread was due to a 1.26% decline in the weighted average cost of funds, while the weighted average yield on interest earning assets declined only 0.66%. Malaga's liabilities reprice more rapidly than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market interest rates.

Non-interest expenses increased 11% in the third quarter of 2009, to $2,501,000 from $2,245,000 in the third quarter of 2008. The increase is primarily attributed to $162,000 increase in FDIC insurance premiums and $114,000 increase in compensation related costs.

Randy C. Bowers, President and CEO of Malaga, remarked, "We are pleased to continue to report record operating results, in spite of an extremely challenging environment for financial institutions. Our asset quality remains strong as a result of our prudent lending practices. For the seventh consecutive quarter, we have been designated a five-star rated bank, the highest rating available from BauerFinancial. We take pride in continuing to provide a strong and safe place to bank for our customers, shareholders and communities."

Malaga's total assets were $796 million at September 30, 2009 compared to $737 million at September 30, 2008, an increase of $59 million or 8%. The loan portfolio at September 30, 2009 was $760 million versus $702 million at September 30, 2008, an increase of $59 million. Malaga originates loans principally for its own portfolio and not for sale. At September 30, 2009, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 74%; single family residential loans - 15%; commercial real estate loans - 7%; home equity lines of credit - 3%; and commercial and other loans - 1%.

Malaga funds its assets with a mix of deposits and FHLB borrowings. Retail deposits totaled $362 million as of September 30, 2009, up from $309 million at September 30, 2008, a 17% increase. Wholesale deposits and FHLB borrowings totaled $355 million at September 30, 2009 and 2008. The increase in total assets for the quarter was funded primarily by increase in retail deposits and earnings. The weighted average cost of funds for the third quarter of 2009 was 2.13% versus 3.31% for the third quarter of 2008.

Malaga's stockholders' equity was $60.5 million at September 30, 2009, or $10.43 per fully diluted common share. The Company has paid a quarterly dividend for 20 consecutive quarters.

As of September 30, 2009, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 9.06% and 14.79%, respectively, at September 30, 2009 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. Now in its 25th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga Bank is proud of its continuing tradition of relationship-based banking and legendary customer service. Malaga Bank's web site is www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS 25% INCREASE IN SECOND QUARTER AND 38% INCREASE YEAR TO DATE

Palos Verdes Estates, CA - July 30, 2009 - Malaga Financial Corporation (OTCBB: MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2009 was $2,218,000 ($0.39 basic and $0.38 fully diluted earnings per share), an increase of $447,000 or 25% from net income of $1,771,000 ($0.31 per share basic and fully diluted) for the quarter ended June 30, 2008. Net income for the six months ended June 30, 2009 was $4,629,000 ($0.81 basic and $0.80 fully diluted earnings per share) as compared to $3,363,000 ($0.59 basic and fully diluted earnings per share) for the six months ended June 30, 2008, a 38 % increase.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread.

Despite the continuing deterioration of the real estate market in Southern California, Malaga did not have any delinquent loans or non-performing assets at June 30, 2009. The Company's allowance for loan losses at June 30, 2009 was $2,818,000 or 0.37% of total loans.

Net interest income totaled $6,440,000 in the second quarter of 2009, up $1,318,000 or 26% from the second quarter of 2008. This increase resulted from a $66 million or 9% increase in average interest earning assets to $770 million and a 0.53% increase in the interest rate spread to 3.23%. The improvement in the interest rate spread was due to a 1.24% decline in the weighted average cost of funds, while the weighted average yield on interest earning assets declined only 0.71%. Malaga's liabilities reprice more rapidly than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market interest rates.

Non-interest expenses increased 26% in the second quarter of 2009, to $2,783,000 from $2,214,000 in the second quarter of 2008. The increase is primarily attributed to $502,000 increase in FDIC insurance premiums, including a special assessment of approximately $355,000. FDIC increased these premiums on all FDIC-insured banks as a means of offsetting losses to its insurance fund as a result of the bank failures attributable to the economic recession and credit crisis.

Randy C. Bowers, President and CEO of Malaga, remarked, "We are pleased to continue reporting such stellar operating results, in spite of the extremely difficult environment for financial institutions and increased FDIC premiums. Our asset quality remains strong, with no delinquent loans or non-performing assets. We continue to build on our success and have expanded and relocated our Torrance branch to our new location at the corner of Crenshaw Blvd. and Rolling Hills Road in order to better serve our customers."

Malaga's total assets were $793 million at June 30, 2009 compared to $723 million at June 30, 2008, an increase of $70 million or 10%. The loan portfolio at June 30, 2009 was $759 million versus $688 million at June 30, 2008, an increase of $71 million. Malaga originates loans principally for its own portfolio and not for sale. At June 30, 2009, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 74%; single family residential loans - 14%; commercial real estate loans - 7%; home equity lines of credit - 3%; and commercial and other loans - 2%.

Malaga funds its assets with a mix of deposits and FHLB borrowings. Retail deposits totaled $333 million as of June 30, 2009, up from $298 million at June 30, 2008, a 12% increase. Wholesale deposits and FHLB borrowings totaled $382 million at June 30, 2009 versus $354 million at June 30, 2008, an 8% increase. The weighted average cost of funds for the second quarter of 2009 was 2.34% versus 3.58% for the second quarter of 2008.

Malaga's stockholders' equity was $58.4 million at June 30, 2009, or $10.11 per fully diluted common share. The Company has paid a quarterly dividend for 20 consecutive quarters.

As of June 30, 2009, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 8.77% and 14.04%, respectively, at June 30, 2009 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. Now in its 25th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga Bank is proud of its continuing tradition of relationship-based banking and legendary customer service. Malaga Bank's web site is www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

Palos Verdes Estates, CA - June 26, 2009 - Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on July 10, 2009. According to Randy Bowers, President and CEO, the dividend will be paid out on or about July 15, 2009. This dividend represents the 20th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 24 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS 51% INCREASE IN EARNINGS IN FIRST QUARTER

Palos Verdes Estates, CA - April 29, 2009 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2009 was $2,411,000 ($0.42 per share basic and fully diluted), an increase of $819,000 or 51% from net income of $1,592,000 ($0.28 per share basic and fully diluted) for the quarter ended March 31, 2008, another record quarter. This resulted in return on average equity of 17.32% for the quarter ended March 31, 2009, versus 12.87% for the same period last year. Net income increased due to continued growth in interest earning assets, improvement in the interest rate spread and excellent credit quality.

The Company did not have any delinquent loans or non-performing assets at March 31, 2009. Net loan charge-offs during the quarter were minimal. The Company's allowance for loan losses was $ 2,691,000 or 0.36% of total loans, at March 31, 2009.

Net interest income totaled $6,482,000 in the first quarter of 2009, up $1,615,000 or 33% from the first quarter of 2008. This increase resulted from a $59 million or 8.5% increase in average interest earning assets to $754 million and a 0.69% increase in the interest rate spread to 3.23%. The improvement in the interest rate spread was due to a 1.44% decline in the weighted average cost of funds, while the weighted average yield on interest earning assets declined only 0.75%. Malaga's liabilities reprice more frequently than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market rates.

Operating expenses increased 17% in the first quarter of 2009, to $2,524,000 from $2,152,000 in the first quarter of 2008. Increased costs resulted primarily from $177,000 in FDIC insurance premiums and $130,000 in salary and related benefits due to branch expansion.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record quarterly earnings in spite of the continued challenging times for the banking industry and the general economy".

Malaga's total assets reached $780 million at March 31, 2009 compared to $728 million at March 31, 2008. The loan portfolio at March 31, 2009 was $745 million, an increase of $58 million or 8% from March 31, 2008. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $327 million as of March 31, 2009, a 5% increase from $311 million at March 31, 2008. Wholesale deposits and FHLB borrowings totaled $377 million at March 31, 2009 versus $347 million at March 31, 2008, a 9% increase. The weighted average cost of funds for the first three months of 2009 was 2.62% versus 4.05% for the first three months of 2008.

As of March 31, 2009, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 8.64% and 13.72%, respectively, at March 31, 2009 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 18th consecutive quarter.

Mr. Bowers concluded, "In this volatile environment our strategy continues to be moderate internal growth combined with prudent loan underwriting and diligent cost control. We are in our 25th year of providing our customers, shareholders and the community a strong and safe place to bank. Malaga Bank continues as a five-star rated bank, the highest rating available from Bauer Financial. We are proud of our strength and exceptional team of bankers and our leadership in the communities we serve. We appreciate the support provided by our customers and board of directors and the continued hard work by our staff".

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. In its 25th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-March 27, 2009- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on April 10, 2009. According to Randy Bowers, President and CEO, the dividend will be paid out on or about April 14, 2009. This dividend represents the 19th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 24 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:
Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS WITH A 30% INCREASE FOR FOURTH QUARTER 2008

PALOS VERDES ESTATES, CALIF.-February 9, 2009- Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the fourth quarter was $1,931,000 ($0.34 per share basic and fully diluted) compared to $1,490,000 ($0.26 per share basic and $0.25 per share fully diluted) for the fourth quarter of 2007, an increase of 30%. Net income for the year ended December 31, 2008 was $7,077,000 ($1.24 per share basic and fully diluted), an increase of $1,110,000 or 19% from net income of $5,967,000 ($1.02 per share basic and $1.01 per share fully diluted) for the year ended December 31, 2007.

Net income increased as a result primarily of a $3,270,000 increase in net interest income due to continued growth in interest earning assets and an improvement in interest rate spread. Average interest-earning assets increased $36 million and Malaga's interest rate spread increased from 2.29% in 2007 to 2.69% in 2008. The interest rate spread increased as declining market interest rates lowered Malaga's cost of funds faster than decreases in the weighted average rates earned on its adjustable rate assets.

Malaga's provision for loan losses was $329,000 in 2008 as compared to $124,000 in 2007. The increased provision was attributable to net loan growth of $59 million in 2008 versus $28 million in 2007 and the weakening economic environment. Malaga's allowance for loan losses was $2.7 million, or 0.38% of loans, at December 31, 2008. Malaga had no loan losses in 2008. Non-performing assets at December 31, 2008 consisted of one non-accrual consumer loan in the amount of $9,000.

Operating expenses increased 14% from $7,804,000 in 2007 to $8,924,000 in 2008. Salary and related benefits increased $749,000 due primarily to overall higher employee benefits cost of $140,000 and higher salary expenses of $600,000 as a result of an increase in number of employees primarily related to the new branch in San Pedro which opened in 2008. Premise and occupancy related expenses increased $311,000 primarily due to the new San Pedro branch. An additional factor contributing to higher operating expenses was an $80,000 increase in FDIC insurance premiums. Randy C. Bowers, President and CEO of Malaga Bank, remarked, "We are pleased to report that in spite of an extremely challenging year for the banking industry, we were able to post record earnings for the fourth quarter and year 2008. We will continue to lend to creditworthy borrowers in order to grow. Due to our already strong capital position, increased earnings and lack of non-performing assets, we elected not to apply for capital augmentation of up to three percent of risk weighted assets provided by the Treasury Department for healthy institutions under the Capital Purchase Program (CPP)".

Malaga's total assets reached $764 million at December 31, 2008 compared to $704 million at December 31, 2007. The loan portfolio at December 31, 2008 was $726 million, an increase of $59 million or 9% from December 31, 2007. Malaga originates loans principally for its own portfolio and not for sale. At December 31, 2008, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 74%; single family residential loans - 14%; commercial real estate loans- 7%; home equity lines of credit - 3% and commercial and other loans- 2%.

Net loan growth of $59 million in 2008 was funded primarily by an $18 million increase in deposits and $36 million increase in FHLB advances.

Total deposits were $369 million at December 31, 2008, compared to $351 million a year ago. The net increase in total deposits was comprised of increases of $32 million in money market accounts and $6 million in demand deposits offset by a decrease in certificates of deposit of $20 million.

As of December 31, 2008, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 8.49% and 13.74%, respectively, at December 31, 2008. In the fourth quarter, Malaga Financial paid a quarterly dividend for the 17th consecutive quarter.

Mr. Bowers concluded, "In this volatile environment, our customers and the community seek out strong stable banks as their banking partner. Malaga Bank is that bank and has received a five-star rating, the highest rating available from Bauer Financial. We will continue to manage the bank in the prudent manner that has provided our shareholders, employees and the community a safe place to bank for over 23 years".

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and San Pedro. For over 23 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-December 19, 2008- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 8 cents per share to shareholders of record on January 5, 2009. According to Randy Bowers, President and CEO, the dividend will be paid out on or about January 9, 2009. This dividend represents the 18th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:
Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS 20% INCREASE IN THIRD QUARTER EARNINGS; NO DELINQUENT LOANS OR NON-PERFORMING ASSETS

Palos Verdes Estates, CA - October 24, 2008 - Malaga Financial Corporation (OTCBB: MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2008 was $1,783,000, an increase of $303,000 or 20% from net income of $1,480,000 for the quarter ended September 30, 2007. Basic and fully diluted earnings per share increased to $0.31 from $0.25, representing a 24% increase. Net income for the nine months ended September 30 2008 was $5,146,000 ($0.90 basic and fully diluted earnings per share) as compared to $4,477,000 ($0.76 basic and fully diluted earnings per share).

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread. Earnings per share increased at a higher rate than net income as a result of the Company's repurchase of 194,734 shares of Common Stock in the fourth quarter of 2007 and 24,847 shares in the third quarter 2008.

Malaga had no delinquent loans or non-performing assets at September 30, 2008. The Company attributes this to its continued commitment to prudent and time-tested loan underwriting standards and its policy not to underwrite marginally higher-yielding but riskier loans. The Company's allowance for loan losses at September 30, 2008 was $2,638,000 or 0.38% of total loans compared to $2,312,000 or 0.36% of total loans as of September 30, 2007.

Net interest income totaled $5,246,000 in the third quarter of 2008, up $898,000 or 21% from the third quarter of 2007. This increase resulted from a $28 million or 4% increase in average interest earning assets to $710 million and a 0.51% increase in the interest rate spread to 2.77%. The improvement in the interest rate spread was due to a 1.07% decline in the weighted average cost of funds, while the weighted average yield on interest earning assets declined only 0.56%. Malaga's liabilities reprice more rapidly than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market interest rates.

Operating expenses increased 18% in the third quarter of 2008, to $2,245,000 from $1,896,000 in the third quarter of 2007. The increase in operating expenses was primarily attributable to the personnel and operating costs of Malaga's new branch in San Pedro, which opened in April 2008. Randy C. Bowers, President and CEO, remarked, "The San Pedro branch continues to exceed our expectations and new deposits provide additional liquidity during the recent turbulent financial service industry environment."

Mr. Bowers continues, "Malaga has not been as negatively impacted as many other institutions since we do not make sub-prime mortgage loans and our investment portfolio does not include any preferred stock or debt securities issued by companies currently identified as troubled. We believe our customers appreciate our commitment to traditional core banking activities, and this commitment will continue to foster a healthy balance sheet and earnings."

"The recent tremendous turbulence in the global financial markets along with recent unprecedented action by the US Congress, US Treasury and the Federal Reserve Bank to stabilize these markets has resulted in more questions than answers. We are proactive in monitoring these changes and based on further information may find some provisions that will be beneficial for the Company," commented Jasna Penich, Chief Financial Officer.

Malaga's total assets were $737 million at September 30, 2008 compared to $709 million at September 30, 2007, an increase of $28 million. The loan portfolio at September 30, 2008 was $702 million versus $645 million at September 30, 2007, an increase of $57 million. Malaga originates loans principally for its own portfolio and not for sale. At September 30, 2008, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 74%; single family residential loans - 13%; commercial real estate loans - 7%; home equity lines of credit - 3%; and commercial and other loans - 3%.

Malaga funds its assets with a mix of deposits and FHLB borrowings. Retail deposits totaled $309 million as of September 30, 2008, down from $329 million at September 30, 2007, a 6% decrease. Malaga Bank continues its efforts to increase retail deposits in order to rely less on other funding sources, but faces severe rate competition from troubled institutions. The Bank has chosen not to engage in this irrational deposit pricing which would materially reduce net interest margin, but to build its deposit base based on strong customer relationships and customers who desire the security of a well-capitalized, healthy bank. Deposits from the state of California and FHLB borrowings totaled $355 million at September 30, 2008 versus $303 million at September 30, 2007, a 17% increase. The weighted average cost of funds for the third quarter of 2008 was 3.31% versus 4.38% for the third quarter of 2007.

Malaga's stockholders' equity was $52.5 million at September 30, 2008, or $9.21 per fully diluted common share. The Company paid a quarterly dividend for the 17th consecutive quarter.

As of September 30, 2008, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations, with a risk-based capital ratio of 13.83%.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:
Randy Bowers
President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS 22% INCREASE IN SECOND QUARTER EARNINGS; NO DELINQUENT LOANS OR NON-PERFORMING ASSETS

Palos Verdes Estates, CA - August 22, 2008 - Malaga Financial Corporation (OTCBB: MLGF),the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2008 was $1,771,000, an increase of $322,000 or 22% from net income of $1,449,000 for the quarter ended June 30, 2007. Basic and fully diluted earnings per share increased to $0.31 from $0.24, representing a 29% increase. Net income for the six months ended June 30 2008 was $3,363,000 ($0.59 basic and fully diluted earnings per share) as compared to $2,997,000 ($0.51 basic and fully diluted earnings per share).

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread. Earnings per share increased at a higher rate than net income as a result of the Company's repurchase of 194,734 shares of Common Stock in the fourth quarter of 2007.

Despite the continuing deterioration of the real estate market in Southern California, Malaga did not have any delinquent loans or non-performing assets at June 30, 2008. The Company's allowance for loan losses at June 30, 2008 was $2,556,000 or 0.37% of total loans.

Net interest income totaled $5,122,000 in the second quarter of 2008, up $808,000 or 19% from the second quarter of 2007. This increase resulted from a $29 million or 4% increase in average interest earning assets to $704 million and a 0.39% increase in the interest rate spread to 2.74%. The improvement in the interest rate spread was due to a 0.83% decline in the weighted average cost of funds, while the weighted average yield on interest earning assets declined only 0.44%. Malaga's liabilities reprice more rapidly than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market interest rates.

Operating expenses increased 21% in the second quarter of 2008, to $2,214,000 from $1,833,000 in the second quarter of 2007. The increase in operating expenses is primarily attributed to the personnel and operating costs of Malaga's new branch in San Pedro, which opened in April 2008.

Randy C. Bowers, President and CEO of Malaga Bank, remarked, "Since our opening, we have received an extremely favorable response from the residents and businesses in San Pedro, who seem to appreciate a 'locally owned and operated' bank. We are well ahead of our projections for this banking center."

Mr. Bowers continues, "We are pleased that we are able to continue reporting such favorable operating results, in spite of an extremely difficult environment for financial institutions. Our asset quality remains strong, with no delinquent loans or non-performing assets. Lower interest rates have improved debt coverage for apartment loans, which represent the main component of our loan portfolio."

"We continue to manage our cost of funds closely, despite strong competition for liquidity in the deposit market. Although our total deposits have declined, due to a decrease in certificates of deposit, approximately 40% of the decrease has been replaced with lower cost transaction and money market accounts. We are also starting to see the return of some CD customers, who are opting for safety over higher rates." Mr. Bowers adds.

Malaga's total assets were $723 million at June 30, 2008 compared to $690 million at June 30, 2007, an increase of $33 million. The loan portfolio at June 30, 2008 was $685 million versus $638 million at June 30, 2007, an increase of $47 million. Malaga originates loans principally for its own portfolio and not for sale. At June 30, 2008, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 77%; single family residential loans - 11%; commercial real estate loans - 8%; home equity lines of credit - 2%; and commercial and other loans - 2%.

Malaga funds its assets with a mix of deposits and FHLB borrowings. Retail deposits totaled $299 million as of June 30, 2008, down from $329 million at June 30, 2007, a 9% decrease. Deposits from the state of California and FHLB borrowings totaled $353 million at June 30, 2008 versus $293 million at June 30, 2007, a 21% increase. The weighted average cost of funds for the second quarter of 2008 was 3.58% versus 4.40% for the second quarter of 2007.

Malaga's stockholders' equity was $51.3 million at June 30, 2008, or $8.95 per fully diluted common share. The Company paid a quarterly dividend for the 16th consecutive quarter.

As of June 30, 2008, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations, with a risk-based capital ratio of 13.45%.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION ANNOUNCES APPOINTMENT OF NEW CHIEF FINANCIAL OFFICER

PALOS VERDES ESTATES, CALIF.-August 13, 2008-Malaga Financial Corporation (OTCBB:MLGF).Malaga Financial Corporation and its subsidiary Malaga Bank are pleased to announce the appointment of Jasna Penich as Executive Vice President and Chief Financial Officer. With over 20 years of banking experience, Ms Penich brings with her a solid background in finance, administration and planning, including 17 years as CFO of another community bank in the South Bay. Ms Penich is a graduate of the Marshall School of Business at USC and a Torrance resident.

Randy Bowers, President and CEO of Malaga Bank, stated, "Jasna's unique experience and abilities make her a welcome addition to our senior management team as we continue to grow and expand our banking franchise in the South Bay."

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

Randy Bowers
President and Chief Executive Officer
Malaga Fanancial Corporation
(310) 375-9000
rbowers@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS 3% INCREASE IN QUARTER EARNINGS; NO NON-PERFORMING ASSETS

Palos Verdes Estates, CA - May 20, 2008 - Malaga Financial Corporation (OTCBB: MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2008 was $1,592,000 ($0.28 per share basic and fully diluted), an increase of $44,000 or 3% from net income of $1,548,000 ($0.26 per share basic and fully diluted) for the quarter ended March 31, 2007. Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread and was partially offset by increased loan loss provision and higher operating costs.

Despite the deteriorating real estate market in Southern California, Malaga did not have any delinquent loans or non-performing assets at March 31, 2008. The Company did increase its provision for loan losses to $122,000 in the first quarter of 2008 from $12,000 in the first quarter of 2007, due to an increase in the size of the loan portfolio and economic conditions. The Company's allowance for loan losses was $2,555,000 or 0.37% of total loans, at March 31, 2008.

Net interest income totaled $4,867,000 in the first quarter 2008, up $518,000 or 12% from the first quarter of 2007. This increase resulted from a $40 million or 6% increase in average interest earning assets to $663 million and a 0.16% increase in the interest rate spread to 2.54%. The improvement in the interest rate spread was due to a 0.49% decline in the weighted average cost of funds, while the weighted average yield on interest earnings assets declined only 0.33%. Malaga's liabilities reprice more frequently than its interest earning assets, and thus Malaga will generally see an improvement in its interest rate spread during periods of declining market interest rates.

Operating expenses increased 10% in the first quarter of 2008, to $2,152,000 from $1,951,000 in the first quarter of 2007. Increased costs were centered in $62,000 in salary and related benefits due to more employees and $67,000 in occupancy expense due primarily to Malaga's new San Pedro branch.

Randy C. Bowers, President and CEO of Malaga Bank, remarked, "We are pleased to report that, in spite of an extremely challenging environment for the banking industry, we achieved a 3% increase in quarterly earnings over the corresponding prior period. Additionally, Los Angeles Business Journal named Malaga Bank the 'Most Profitable Savings and Loan' in Los Angeles county ranked by return on assets for the year ended December 31, 2007. We are delighted to announce that we opened our new full-service branch in San Pedro on April 29, 2008, and we expect to begin construction on the new Torrance branch location at Crenshaw Blvd. and Rolling Hills Road in the next few weeks.

"Although we engage almost exclusively in real estate lending, we continue to report no delinquent loans or non-performing assets. We are now reaping the benefits of our prudent loan underwriting practices and our historical policy not to engage in riskier types of lending," Mr. Bowers continued. Malaga's total assets reached $728 million at March 31, 2008 compared to $677 million at March 31, 2007, an increase of $51 million. The loan portfolio at March 31, 2008 was $687 million versus $643 million at March 31, 2007, an increase of $44 million. Malaga originates loans principally for its own portfolio and not for sale. At March 31, 2008, the loan portfolio was comprised of the following types of loans outstanding: multi-family loans - 77%; single family residential loans - 12%; commercial real estate loans - 7%; home equity lines of credit - 2%; and commercial and other loans - 2%.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $311 million as of March 31, 2008, down from $329 million at March 31, 2007, a 5% decrease. Wholesale deposits and FHLB borrowings totaled $348 million at March 31, 2008 versus $281 million at March 31, 2007, a 24% increase. The weighted average cost of funds for the first three months of 2008 was 4.00% versus 4.49% for the first three months of 2007.

Malaga's stockholders' equity was $50.0 million at March 31, 2008, or $8.70 per fully diluted common share. The Company paid a quarterly dividend for the 15th consecutive quarter. As of March 31, 2008, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations, with a risk-based capital ratio of 12.75%.

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For over 23 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

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