Malaga Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

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MALAGA FINANCIAL CORPORATION REPORTS A 14 % INCREASE IN EARNINGS FOR 2007

Palos Verdes Estates, CA - February 15, 2008 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the year ended December 31, 2007 was $5,967,000 ($1.02 per share basis and $1.01 per share fully diluted), an increase of $754,000 or 14% from net income of $5,213,000 ($0.90 per share basis and $0.88 per share fully diluted) for the year ended December 31, 2006. Net income for the fourth quarter was $1,490,000 ($0.26 per share basis and fully diluted) compared to $1,299,000 ($0.23 per share basic and $0.22 per share fully diluted) for the fourth quarter of 2006.

Net income increased as a result of continued growth in interest earning assets and an improvement in the interest rate spread. Net interest income increased by $2,021,000 due to a $62 million (10%) increase in average interest-earning assets (principally loans). The interest rate spread (the difference between the weighted average yield on average earning assets and the weighted average rate paid on average interest-bearing liabilities) increased from 2.25% in 2006 to 2.29% in 2007.

Malaga's provision for loan losses was $124,000 in 2007 as compared to $310,000 in 2006. The reduced provision was attributable to lower net loan growth (loan originations less amortizations and payoffs) of $28 million in 2007 versus $85 million in 2006. Malaga charged-off no loans in 2007 and had no delinquent loans or non-performing assets at December 31, 2007.

Operating expenses increased 13.6% from $6,869,000 in 2006 to $7,804,000 in 2007. Salary and related benefits increased $476,000 due primarily to higher employee benefit cost of $188,000 and lower capitalized loan cost of $147,000 due to lower loan production in 2007. Rental of additional office space and Malaga's new branch in San Pedro contributed to higher occupancy expense of $147,000. Other factors contributing to higher operating expenses were $100,000 paid to settle a property dispute and increased professional fees totaling $127,000.

Randy C. Bowers, President and CEO of Malaga Bank, remarked, "We are pleased to report that in spite of an extremely difficult year for the banking industry, we were able to post a 14% increase in earnings. Our prudent lending practices resulted in slower growth than in the prior several years but have resulted in a loan portfolio with no non-performing assets. As a result, these practices coupled with our regulatory capital levels and the efforts of our dedicated staff leave us well positioned to take advantage of future opportunities."

Malaga's total assets reached $704 million at December 31, 2007 compared to $673 million at December 31, 2006. The loan portfolio at December 31, 2007 was $665 million, an increase of $28 million or 4% from December 31, 2006. Malaga originates loans principally for its own portfolio and not for sale. At December 31, 2007, 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%.

Loan growth in 2007 was funded by a $35 million increase in FHLB advances. Deposits declined $6 million as maturing brokered deposits were replaced with less costly FHLB advances.

As of December 31, 2007, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Risk-based capital at December 31, 2007 was 12.79%. In 2007, Malaga repurchased 298,593 shares of common stock at an average price of $9.86 per share. This included 194,734 shares purchased in the fourth quarter at an average price of $10.01 pursuant to Malaga's tender offer to all shareholders.

Malaga Bank, a subsidiary of MFC, is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "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 21, 2007- 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 7, 2008. According to Randy Bowers, President and CEO, the dividend will be paid out on or about January 15, 2008. This dividend represents the 14th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND RESULTS OF TENDER OFFER

Palos Verdes Estates, CA - November 23, 2007 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2007 was $4,477,000 ($0.76 per share basic and fully diluted), an increase of $564,000 or 14% from net income of $3,913,000 ($0.68 per share basic and $0.67 per share fully diluted) for the nine months ended September 30, 2006. Earnings for the third quarter increased $138,000 from $1,343,000 to $1,480,000. Earnings per share were $0.25 compared to $0.23 ($0.23 versus $0.20 fully diluted) for the quarters ended September 30, 2007 and 2006, respectively.

The Company successfully completed its tender offer on November 14, 2007 and repurchased a total of 194,734 shares for $1,950,000. There was no repurchase of stock during the nine months ended September 30, 2006.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread. For the nine months ended September 30, 2007, net interest income increased by $1,685,000 over the corresponding prior period due to a $69 million (11%) increase in average interest-earning assets (principally loans) combined with a 5 basis point improvement in the net interest spread for the nine months ended September 30, 2007.

During the first nine months of 2007, a loan loss provision of $43,000 was booked versus $257,000 provision in the first nine months of 2006. The reduced provision was attributable to lower net loan growth (loan originations less amortizations and payoffs) of $5 million in the nine months ended September 30, 2007 versus net loan growth of $71 million during the corresponding prior period. There were no loan charge-offs or non-performing assets at September 30, 2007 or 2006. Noninterest income increase by $45,000 to $289,000 for the nine month period ended September 30, 2007 from $244,000 for the same period in the prior year. Higher customer service fees combined with an increase in loan placement fees were the primary sources of the increase.

Operating expenses increased to $5,780,000 in the first nine months of 2007 compared to $4,824,000 in the first nine months of 2006. Lower loan production in 2007 resulted in lower capitalized cost of $220,000. Additional contributors were a one time adjustment to reflect vacation accrual of $140,000, salary increase of $195,000, higher medical insurance expense of $100,000, and a $100,000 legal settlement.

Randy C. Bowers, President and Chief Executive Officer of Malaga, commented that, "As a result of our strong balance sheet and lack of delinquent or non-performing loans, we are well positioned for growth. We look forward to opening a new full service banking center in the South Shores area of San Pedro early in 2008. Early next year, we also anticipate beginning construction on the permanent site for our Torrance banking center at the corner of Crenshaw Boulevard and Rolling Hills Road."

Malaga's total assets reached $709 million at September 30, 2007 compared to $655 million at September 30, 2006, an increase of $54 million. The total loan portfolio at September 30, 2007 was $643 million versus $623 million at September 30, 2006, an increase of $20 million. Malaga's loan portfolio is comprised of the following: 77% multi-family loans, 13% residential loans, 7% commercial real estate loans, 1% construction loans and 2% other. The remainder of net asset growth was in Federal funds sold of $33 million.

Malaga funds its asset growth with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $336 million as of September 30, 2007, up from $282 million at September 30, 2006, a 19% increase. Wholesale deposits and FHLB borrowings totaled $303 million at September 30, 2007 versus $309 million at September 30, 2006. Increased emphasis on the growth of retail deposits, which have lower costs than other funding sources, has had a positive impact on the overall cost of funds and earnings. As of September 30, 2007, 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 12.69%.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2007

Palos Verdes Estates, CA - September 19, 2007 - Malaga Financial Corporation (OTCBB:MLGF),. the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2007 was $2,997,000 ($0.51 per share basic and fully diluted), an increase of $426,000 or 17% from net income of $2,571,000 ($0.45 per share basic and $0.44 per share fully diluted) for the six months ended June 30, 2006.

Net income increased primarily due to continued growth in interest earning assets and improvement in the interest rate spread. For the six months ended June 30, 2007, net interest income increased by $1,239,000 over the corresponding prior period due to an $74 million (13%) increase in average interest-earning assets (principally loans) combined with higher yields. Higher funding costs for deposits and borrowings partially offset this increase. The interest rate spread increased to 2.36% at June 30, 2007 versus 2.32% at June 30, 2006.

The increase in net interest income was partially offset by higher operating expenses, which increased to $3,784,000 in the first six months of 2007 compared to $3,190,000 in the first six months of 2006. The operating cost increase was centered in higher salary and employee benefit related expenses. Non-operating expense consisted of a legal settlement.
< br/> Randy C. Bowers, President and Chief Executive Officer of Malaga, commented that, "In the current environment, many lenders have experienced significant increases in loan delinquencies and foreclosures. Many sub-prime lenders have gone bankrupt or out of business. We are weathering this negative trend by continuing our long-standing disciplined and prudent approach to lending. During the past year, we have had no delinquent loans over 60 days or nonperforming assets, and have not foreclosed upon any loans. As a result, Malaga is well positioned to take advantage of new opportunities in the future."

During the first six months of 2007, a loan loss provision of $18,000 was booked versus $191,000 provision in the first six of 2006. The reduced provision was attributable to lower loan originations of $52 million in the six months ended June 30, 2007 versus loan originations of $88 million in the corresponding prior period. There were no loan charge-offs or non-performing assets at June 30, 2007 or 2006. Malaga's conservative underwriting standards, particularly with respect to loan to value ratios, continue to mitigate risk exposure to the apparent softening in the Southern California real estate market.

Malaga is increasing its focus on business and consumer lending, as it seeks to deepen its relationship with the members of the local community, which encompasses the areas surrounding its branch offices in Palos Verdes and Torrance.

Malaga's total assets reached $690 million at June 30, 2007 compared to $636 million at June 30, 2006, an increase of $54 million. The total loan portfolio at June 30, 2007 was $638 million versus $607 million at June 30, 2007, an increase of $31 million.

Malaga funds its asset growth with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $334 million as of June 30, 2007, up from $286 million at June 30, 2006, a 17% increase. Wholesale deposits and FHLB borrowings totaled $293 million at June 30, 2007 versus $295 million at June 30, 2006. Increased emphasis on the growth of retail deposits, which have lower costs than other funding sources, has had a positive impact on the overall cost of funds and earnings.

As of June 30, 2007, 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 13.27%. In the six months ended June 30, 2007, the Company repurchased 103,859 shares of its common stock from the former Chief Executive Officer at an average price of $9.59 per share. There was no repurchase of stock during the six month ended June 30, 2006.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH TENDER OFFER FOR UP TO $1,500,000 OF ITS COMMON STOCK

PALOS VERDES ESTATES, CA - (BUSINESS WIRE) - September 14, 2007 - Malaga Financial Corporation (OTC BB: MLGF) (the "Company") announced today that it has commenced a tender offer for the repurchase of shares of its common stock for a total purchase price of up to $1,500,000. The tender offer will expire at 5:00 pm California time on Monday, October 15, 2007.

The Company is making the tender offer through a procedure commonly referred to as a modified "Dutch auction." This procedure allows each stockholder to select the price, $9.50, $10.00 or $10.50 per share, at which the stockholder is willing to sell all or a portion of his or her shares to the Company. All shares will be purchased at the price specified by the tendering stockholder.

If the purchase of all the shares tendered at the price specified by the tendering stockholder would result in a total purchase price of less than $1,500,000, the Company will purchase all the shares properly tendered. If the total purchase price of all of the shares tendered is greater than $1,500,000, the Company will identify the lowest purchase price specified by the tendering stockholders that will allow the Company to purchase enough shares tendered at or below that price to result in a total purchase price of $1,500,000, and purchase all shares tendered at a price below the lowest selected price, if any, and enough of the shares tendered at the lowest selected price to reach a purchase price of $1,500,000. Shareholders whose shares are purchased in the tender offer will be paid in cash, without interest, promptly after expiration of the offer.

The maximum number of shares the Company would purchase under the tender offer is 157,895 shares, or approximately 2.7% of its outstanding common stock, if that number of shares is tendered at the minimum price of $9.50 per share.

The Company has reserved the right to increase the number of shares purchased and extend the expiration date.

The tender offer will be made pursuant to the Offer to Purchase dated September 14, 2007 and related materials, which are being mailed today to all shareholders of record of the Company. Any questions or requests for documents or forms related to the offer should be directed to Randy C. Bowers, President and Chief Executive Officer of the Company at (310) 375-9000.

The Company's Board of Directors has unanimously approved the Offer. However, neither the Company nor our Board of Directors makes any recommendation to shareholders whether to tender their shares or as to the price at which they may choose to tender their shares. The members of the Company's Board of Directors have advised the Company that they do not intend to tender their shares in response to the offer.

This press release is for informational purposes only and is not an offer to buy or a solicitation of an offer to sell any shares. The offer is being made solely by the Offer to Purchase and related materials, which contain important information regarding the tender offer, including the terms and conditions of the offer and instructions on how to tender shares. Shareholders are urged to carefully read the Offer to Purchase and related materials.

Malaga Financial Corporation is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

This release contains forward-looking statements. These forward-looking statements are not historical facts but rather are based on current expectations, estimates, and projections about our industry, our beliefs and our assumptions. Words such as "may," "will," "anticipates," "expects," "intends," "plans," "believes," "seeks" and "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those projected in these forward-looking statements as a result of a number of factors, including, but not limited to, the condition of the real estate market, the availability and conditions of financing for loan pool acquisitions, mortgage-backed securities and other financial assets as well as interest rates. Readers of this release are cautioned not to place undue reliance on these forward-looking statements.

Contact: Randy C. Bowers
President and Chief Executive Officer
Malaga Financial Corporation
310.375.9000
310.373.3615

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MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—August 31, 2007—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 October 1, 2007. According to Randy Bowers, President and CEO, the dividend will be paid out on or about October 12, 2007. This dividend represents the 13th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "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.—June 19, 2007—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 2, 2007. According to Randy Bowers, President and CEO, the dividend will be paid out on or about July 12, 2007. This dividend represents the 12th consecutive quarterly cash dividend paid by the company. The company's subsidiary, Malaga Bank, continues to be well capitalized and credit quality remains high.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS FOR 1st QUARTER 2007

Palos Verdes Estates, CA—May 10, 2007—Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2007 was $1,548,000 ($0.26 per share basic and fully diluted), an increase of $240,000 or 18% from net income of $1,308,000 ($0.23 per share basic and $0.22 per share fully diluted) for the quarter ended March 31, 2006.

Net income increased primarily due to continued growth in interest earning assets and despite a decrease in the interest rate spread. Net interest income increased by $682,000, from the 2006 quarter to the 2007 quarter, due to an $81 million (14%) increase in average interest-earning assets (principally loans). The interest rate spread decreased from 2.38%, during the 2006 quarter, to 2.28%, during the 2007 quarter.

The increase in net interest income was partially offset by higher operating expenses, which increased to $1,951,000 in the 2007 quarter from $1,628,000 in the 2006 quarter. The operating cost increase was centered in compensation related expenses, and income tax provision.

Randy C. Bowers, President and Chief Executive Officer of Malaga, commented that, "We continue to increase our loan portfolio in the face of competitive pressures without resorting to sub-prime lending or otherwise diminishing credit quality. Delinquencies have been negligible and loan losses virtually non-existent."

During the first quarter of 2007, a loan loss provision of $12,000 was booked versus $77,000 in the first quarter of 2006. The reduced provision was attributable to lower loan originations of $23 million in the first quarter of 2007 versus loan originations of $39 million in the first three months of 2006. Malaga's conservative underwriting standards, particularly with respect to loan to value ratios, continue to mitigate risk exposure to the apparent softening in the Southern California real estate market.

Malaga is increasing its focus on business and consumer lending, as it seeks to deepen its relationship with the members of the local community, which encompasses the areas surrounding its branch offices in Palos Verdes and Torrance.

Malaga's total assets reached $677 million at March 31, 2007 compared to $598 million at March 31, 2006, an increase of $79 million. The total loan portfolio at March 31, 2007 was $643 million versus $573 million at March 31, 2006, an increase of $70 million.

Malaga funds its asset growth with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $329 million as of March 31, 2007, up from $282 million at March 31, 2006, a 17% increase. Wholesale deposits and FHLB borrowings totaled $281 million at March 31, 2007 versus $254 million at March 31, 2006, an 11% increase. Increased emphasis on the growth of retail deposits, which have lower costs than other funding sources, has had a positive impact on the overall cost of funds and earnings.

As of March 31, 2007, 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 12.87%.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 22 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "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 14, 2006- 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 December 29, 2006. According to Randy Bowers, President and CEO, the dividend will be paid out on or about January 10, 2007. As reported earlier, earnings continue to be strong as net income for the nine months ended September 30, 2006 was 12% higher than the same period last year. This dividend represents the 10th consecutive quarterly cash dividend paid by the company. The company's subsidiary Malaga Bank continues to be well capitalized and credit quality remains high.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is known for its expertise in financing apartments, business properties, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION ANNOUNCES THE APPOINTMENT RANDY C. BOWERS AS PRESIDENT AND CHIEF EXECUTIVE OFFICER

Palos Verdes Estates, CA—November 16, 2006—Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced the appointment of Randy C. Bowers as the new President and Chief Executive Officer. Mr. Bowers, a resident of Palos Verdes Estates, has over 30 years experience in the banking industry, and has worked in the South Bay community for the past 14 years. Mr. Bowers joined Malaga Bank in 2002 as Executive Vice President and Chief Lending Officer, and has increased the loan asset base by more than $300 million while maintaining excellent credit quality. "We look forward to his leadership of the management team and staff, and his direction in implementing the long term strategic goals of the Bank," commented Mr. Robert E. Kershaw, Chairman of the Board of Directors.

Mr. Bowers stated, "I'm very excited by the opportunity to work with the entire staff of Malaga Bank to further expand the product lines and continue to serve the communities in which we live and work". Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers competitive real estate, business and consumer loans, and a wide array of business and individual deposit products and services that compete directly with larger financial institutions. Malaga Bank remains committed to its standard of excellence in customer service and strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay. The Bank's web site is located at www.malagabank.com. www.malagabank.com.

MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS FOR NINE MONTHS ENDED SEPTEMBER 30, 2006

Palos Verdes Estates, CA—November 7, 2006—Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced earnings for the nine months ended September 30, 2006 were $3,913,000, an increase of $420,000 or 12% from the earnings of $3,493,000 for the nine months ended September 30, 2005. Earnings per share were $.68 compared to $.62 ($.67 versus $.59 fully diluted) for the nine months ended September 30, 2006 and 2005, respectively. Earnings for the third quarter increased $140,000 from $1,203,000 to $1,343,000. Earnings per share were $.23 compared to $.21 ($.23 versus $.20 fully diluted) for the quarters ended September 30, 2006 and 2005, respectively.

Malaga was able to increase its earnings, considering the steady interest rate increases in the Federal Funds rate through the summer of 2006, by continuing to grow its earning assets while maintaining a relatively constant level of operating expenses. Net interest income increased by $861,000 due to a $100 million (20%) increase in average interest-earning assets (principally loans) while the interest rate spread decreased from 2.55% to 2.23% from September 30, 2005 to September 30, 2006. Non-interest expenses were $4,824,000 for the nine months ended September 30, 2006 compared to $4,646,000 in the same period of 2005.

The FOMC, at its meeting on October 23, 2006, chose not to increase the Federal Funds rate for the third consecutive time. These pauses are encouraging and helpful, as they have permitted Malaga's net interest margin to widen, as its adjustable rate loans have re-priced upward at a faster rate than its cost of funds. The effect of the previous 17 straight Federal Funds Rate increases has had a negative effect on net interest income. Malaga's interest rate spread normally contracts during periods of rising interest rates due to an inherent lag as its loans re-price more slowly than its deposits and borrowings, resulting in lower net interest income for Malaga until the loans fully re-price once interest rates stabilize. The opposite is true in a declining interest rate market where interest rate spreads widen until the loans fully re-price again once interest rates stabilize.

Malaga increased its allowance for loan losses by $257,000 in the nine months ended September 30, 2006 versus $265,000 in the nine months ended September 30, 2005 as a result of the growth in the loan portfolio. Malaga continues to conservatively underwrite its real estate loans to maintain strong asset quality, so as to mitigate risk exposure if, as many have predicted, there is a downturn in the Southern California real estate market. Malaga had no non-performing loans at September 30, 2006, December 31, 2005 or September 30, 2005. At September 30, 2006, its allowance for loan losses was $2,241,000.

Malaga's total assets reached $655 million at September 30, 2006 compared to $581 million at December 31, 2005 and $568 million at September 30, 2005. Loan originations in the first nine months of 2006 totaled $119 million versus $136 million in loan originations for the nine months ended September 30, 2005. The loan portfolio at September 30, 2006 was $623 million, an increase of $73 million from year end.

Loan growth in the first nine months of 2006 was funded by a $6 million increase in retail deposits, a $15 million dollar increase in wholesale deposits, a $49 million increase in FHLB advances, and a $ 3 million reduction in cash equivalents.

As of September 30, 2006, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Risk-based capital at September 30, 2006 was 12.66%.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "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.-September 29, 2006- 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 7½ cents per share to shareholders of record on October 10, 2006. According to John R. Polen, President and CEO, the dividend will be paid out on or about October 12, 2006. As reported earlier, earnings continue to be strong as net income for the six months ended June 30, 2006 was 12% higher than the same period last year. This dividend represents the 9th consecutive quarterly cash dividend paid by the company. The company's subsidiary Malaga Bank continues to be well capitalized and credit quality remains high.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is known for its expertise in financing apartments, business properties, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS FOR SIX MONTHS ENDED JUNE 30, 2006

Palos Verdes Estates, CA—August 8, 2006—Malaga Financial Corporation (OTCBB:MLGF), the parent company ("Company") of Malaga Bank FSB, today announced earnings for the six months ended June 30, 2006 were $2,571,000, an increase of $281,000 or 12% from the earnings of $2,290,000 for the six months ended June 30, 2005. Earnings per share were $.45 compared to $.41 ($.44 versus $.39 fully diluted), respectively.

Malaga was able to increase its earnings, despite 11 increases in the Federal Funds rate, by continuing to grow while maintaining a relatively constant level of operating expenses. Net interest income increased by $490,000 due to a $96 million (20%) increase in average interest-earning assets (principally loans) while the interest rate spread decreased from 2.63% to 2.32%.

The FOMC, at its meeting today, chose not to increase the Federal Funds rate for the first time in 18 meetings since June 2004. This event is encouraging. The effect of the previous 17 straight Federal Funds Rate increases has had a negative effect on net interest income. Malaga's interest rate spread normally contracts during periods of rising interest rates due to an inherent lag as its loans re-price more slowly than its deposits and borrowings, resulting in lower net interest income for Malaga until the loans fully re-price once interest rates stabilize. The opposite is true in a declining interest rate market where interest rate spreads widen until the loans fully re-price again once interest rates stabilize.

Malaga increased its allowance for loan losses by $191,000 in the six months ended June 30, 2006 versus $125,000 in the six months ended June 30, 2005 as a result of the growth in the loan portfolio. Malaga continues to conservatively underwrite its real estate loans to maintain strong asset quality, so as mitigate risk exposure if, as many have predicted, there is a softening in the Southern California real estate market. Malaga had no non-performing loans at June 30, 2006, December 31, 2005 or June 30, 2005. At June 30, 2006, its allowance for loan losses was $2,175,000.

The Company's total assets reached $636 million at June 30, 2006 compared to $581 million at December 31, 2005 and $527 million at June 30, 2005. Loan originations in the first six months of 2006 totaled $88 million versus $76 million in loan originations for the six months ended June 30, 2005. The loan portfolio at June 30, 2006 was $605 million, an increase of $55 million from year end. Loan originations in the first six months 2006 were funded by a $5 million increase in retail deposits, an increase of FHLB advances of $47 million, and reduction in cash equivalents of $3 million. As of June 30, 2006, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Risk-based capital at June 30, 2006 was 12.36%.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com

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REPORT TO SHAREHOLDERS

Malaga Financial Corporation (OTCBB:MLGF), the parent company ('Company') of Malaga Bank FSB, today reported that net income for the year ended December 31, 2005 was $4,758,000 compared to $5,394,000 for the previous year, a decrease of $636,000 or 12%. Diluted earnings per share were $.81 versus $.94, for 2005 and 2004, respectively. Net income for the fourth quarter of 2005 was $1,265,000 ($.21 diluted earnings per share) compared with $1,381,000 ($.24 diluted earnings per share) for the same quarter in 2004, a decrease of $116,000, or 8%.

The Company's total assets increased from $496 million at December 31, 2004 to $581 million at December 31, 2005, a 17% increase. This increase was due principally to an $86 million or 18% increase in loans. This growth in assets was primarily funded by a $20 million increase in deposits to $313 million and, a $52 million increase in Federal Home Loan Bank advances to $208 million.

As a result of its net income and exercise of stock options, the Company's stockholder's equity increased $4,424,000 at December 31, 2005 net of $1,420,000 in cash dividends. At both December 31, 2005 and 2004, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations.

The lower net earnings in the twelve months ended December 31, 2005 was due to a number of factors. Net interest income declined from $14,240,000 for the twelve months ended December 31, 2004 to $14,033,000 for the twelve months ended December 31, 2005, notwithstanding a $59 million increase in average interest earning assets. The effect of the eight Fed Rate increases during 2005 has had a negative effect on net interest income. Malaga's interest rate spread normally contracts during periods of rising interest rates due to an inherent lag as its loans re-price more slowly than its deposits and borrowings, resulting in lower net interest income for Malaga until the loans fully re-price. The opposite is true in a declining interest rate market where interest rate spreads widen until the loans fully re-price.

For the twelve months ended December 31, 2005, Malaga provided $306,000 in provision for loan losses based upon the growth of the loan portfolio versus a recapture of $225,000 of its allowance for loan losses reserves in 2004. In 2005, the Company incurred less than $300 in actual consumer loan losses and at December 31, 2005 had no non-performing assets, and its allowance for loan losses was $1,984,000. Malaga continues to conservatively underwrite its real estate loans to maintain strong asset quality, so to mitigate risk exposure if, as many have predicted, there is a softening in the Southern California real estate market. This conservative strategy has limited Malaga from increasing its loan portfolio at a rate sufficient to generate net interest income that would offset the interest margin compression.

Other income declined $296,000, due to lower loan placement fees. Other operating expenses were $287,000 higher in 2005 than the comparable period in 2004 primarily due to costs associated with the development and operation of a new branch.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

John R. Polen
President and CEO

Robert E. Kershaw
Chairman of the Board

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—March 31, 2006—Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of 7½ cents per share to shareholders of record on April 10, 2006. According to John R. Polen, President and CEO, the dividend will be paid out on or about April 14, 2006.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—December 15, 2005—Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of 6¼ cents per share to shareholders of record on December 30, 2005. According to John R. Polen, President and CEO, the dividend will be paid out on or about January 5, 2006.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
REPORTS EARNINGS FOR 3rd QUARTER OF 2005

PALOS VERDES ESTATES, CALIF.—December 1, 2005—Malaga Financial Corporation (OTCBB: MLGF), the parent company of Malaga Bank FSB, today announced net earnings of $1,203,000 ($.21 per share, $.20 per share fully diluted) for the quarter ended September 30, 2005, compared with net earnings of $1,388,000 ($.25 per share, $.24 per share fully diluted) for the same quarter of 2004. For the nine months ended September 30, 2005, MFC posted net earnings of $3,493,000 ($.62 per share, $.59 per share fully diluted) compared to $4,013,000 for the same period in 2004 ($.75 per share, $.70 per share fully diluted). Total assets as of September 30, 2005 were $568 million, an increase of $74 million from September 30, 2004.

The lower net earnings in the three and nine months ended September 30, 2005 were due to a number of factors. Net interest income declined from $10,495,000 for the nine months ended September 30, 2004 to $10,317,000 for the nine months ended September 30, 2005, notwithstanding a $56 million increase in average interest earning assets. The effect of the six Fed Rate increases during 2005 has had a negative effect on net interest income. Malaga's interest rate spread normally contracts during periods of rising interest rates due to an inherent lag as its loans re-price more slowly than its deposits and borrowings, resulting in lower net interest income for Malaga until the loans fully re-price. The opposite is true in a declining interest rate market where interest rate spreads widen until the loans fully re-price.

Other income declined $261,000, due to lower loan referral fees and prepayment penalties on loans. Other operating expenses were $330,000 higher in the nine months ended September 30, 2005 than the comparable period in 2004 primarily due to costs associated with the development and operation of a new branch.

For the nine months ended September 30, 2005, Malaga provided $265,000 in provision for loan losses based upon the growth of the loan portfolio versus no provision for the corresponding period in 2004 where the existing reserves were deemed adequate. Malaga continues to conservatively underwrite its real estate loans to maintain strong asset quality, so to mitigate risk exposure if, as many have predicted, there is a softening in the Southern California real estate market. This strategy has prevented Malaga from increasing its loan portfolio at a rate sufficient to generate net interest income that would offset the interest margin compression. "Loan asset quality remains excellent with no loan losses recorded in the last several years", stated John Polen, President and CEO.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its "legendary" customer service. The Bank's web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. — October 5, 2005 — Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of 6¼ cents per share to shareholders of record on October 17, 2005. According to John R. Polen, President and CEO, the dividend will be paid out on or about October 18, 2005.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS EARNINGS
FOR 2nd QUARTER OF 2005

PALOS VERDES ESTATES, CALIF. — August 16, 2005 Malaga Financial Corporation (OTCBB:MLGF), the parent company ('Company') of Malaga Bank FSB ('Malaga'), today announced its June 30, 2005 earnings. Earnings for the quarter ended June 30, 2005 were $1,207,000, or $.21 per share, compared with $1,395,000 or $.25 per share for the same quarter in 2004. Diluted earnings per share were $.20 versus $.24 per share, respectively. Total assets as of June 30, 2005 were $527 million, an increase of $41 million over the same period last year. 

As reported in the first quarter, the Company is no longer operating in last year's favorable interest rate environment following ten increases in the discount rate by the Federal Reserve since mid 2004. This has caused the narrowing of interest rate spreads between the Bank's loans and deposits resulting in lower net interest income. The Company's primary source of income is derived from the net interest margin between interest earned on loans and the cost of deposits and borrowings. The Company will continue with the current business strategy of growing the Bank with lower risk real estate loans at current market rates to increase net interest income. 

Malaga received approval from the Torrance planning commission to build an 8,000 sq. ft. building on the site we own to relocate our real estate loan division and our Rolling Hills retail branch office. This is a key accomplishment in the development process.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its 'legendary' customer service. The Bank's web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. — July 1, 2005 — Malaga Financial Corporation (OTC:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of 6¼ cents per share to shareholders of record on July 11, 2005. According to John R. Polen, President and CEO, the dividend will be paid out on or about July 15, 2005. MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION REPORTS EARNINGS
FOR 2004 AND 1ST QUARTER OF 2005

Palos Verdes Estates, CA — April 28, 2005— Malaga Financial Corporation (OTCBB:MLGF), the parent company ('Company') of Malaga Bank FSB, today reported that 2004 was the most successful financial year in its history. Net income for the year was $5,394,000 compared to $4,889,000 for the previous year, an increase of $505,000 or 10%. Diluted earnings per share were $.94 versus $.90, for 2004 and 2003, respectively. Net income for the fourth quarter of 2004 was $1,381,000 ($.24 diluted earnings per share) compared with $1,267,000 ($.23 diluted earnings per share) for the same quarter in 2003, an increase of $114,000, or 9%. 

The Company's total assets increased from $419 million at December 31, 2003 to $ 496 million at December 31, 2004, an 18% increase. This increase was due principally to a $90 million or 24% increase in loans. This growth in assets was primarily funded by a $54 million increase in deposits to $293 million and, a $16 million increase in Federal Home Loan Bank advances. 

As a result of its net income and exercise of stock options, the Company's stockholder's equity increased $5,762,000 at December 31, 2004 net of $555,000 in cash dividends. At both December 31, 2004 and March 31, 2005, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed 'well-capitalized' under applicable regulations.

The Company attributed its success in 2004 to a combination of factors: a very favorable interest rate environment during the first half of the year, an extremely active real estate market, the excellent quality of its loan portfolio, and its extremely loyal and faithful customers. In 2004, the Company did not incur any loan losses and at December 31, 2004 had no non-performing assets, and its allowance for loan losses was $1,679,000.

At the end of the first quarter 2005, the Company had total assets of $504 million. Earnings for the quarter ended March 31, 2005 were $1,083,000, or $.18 fully diluted per share, down from $1,230,000, or $.21 fully diluted per share, for the same quarter last year. The Company is no longer operating in last year's favorable interest rate environment following seven increases in the discount rate by Federal Reserve Board since mid 2004. This has caused the narrowing of interest rate spreads between the Bank's loans and deposits resulting in lower net interest income. The Company's primary source of income is derived from the net interest margin between interest earned on loans and the cost of deposits and borrowings. The Company will continue with the current business strategy of growing the Bank with well-underwritten real estate loans at current market rates to increase net interest income. 

Also, during the first quarter, the Company issued $8,249,000 million of junior subordinated debentures to new subsidiary business trusts formed for the exclusive purpose of issuing trust preferred securities to provide additional regulatory capital for Malaga Bank. This debt has a relatively low cost as interest payments on the debentures are deductible for income tax purposes. The trust purchased the debentures with the proceeds of the sale of its common trust securities to the Company and trust preferred securities for $8,000,000. The subordinated debentures and trust preferred securities have generally identical terms, including that they mature in 2035, are redeemable at the Company's option commencing March 15, 2010 at par, and require quarterly distributions/interest payments at the fixed rate of 5.67% per annum for five years with respect to $5.5 million of the debentures and at a rate which adjusts quarterly at the three-month LIBOR rate plus 1.77% on the balance of the debentures (the blended rate was 5.39% at March 31, 2005). 

During March 2005, Malaga Bank celebrated its 20th Year Anniversary and also surpassed the $500 million total asset benchmark. 

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 20 years. Malaga Bank offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. Malaga Bank is the largest community bank in the South Bay area and is well known for its 'legendary' customer service. The Bank's web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA BANK CELEBRATES 20 YEARS OF BANKING EXCELLENCE

On March 14, 1985, Malaga Bank opened its doors to the people of the Palos Verdes Peninsula. Malaga is the only locally owned and operated bank on the Peninsula, and has become the largest community bank in the South Bay area. Malaga is proud to be celebrating its 20th year. 

Starting with $3.2 million in capital from local investors, the bank has accumulated $500 million in total assets during this 20-year period. There are now three retail branch offices and a Real Estate Loan Center dedicated to serving the residents and businesses of the Palos Verdes Peninsula and surrounding communities.

Malaga's mission has always been to offer a truly unique banking experience. 'Responsive Banking with Elegance' is a philosophy that has continued through the years, supported by the same friendly service and elegant atmosphere that many have come to enjoy. 

Malaga Bank is a leading real estate lender in the South Bay area, specializing in home and income property loans for 20 years. The Bank brings the same commitment to service in the lending operations, offering custom tailored loan programs to fit each borrower's needs. 

From its inception, Malaga Bank has placed importance on community involvement—not only by providing support through financial resources, but also as volunteers. Many employees are actively involved in various organizations for the betterment of the community.

Malaga Bank has reported record earnings for the past several years, which have contributed to its strength. Malaga has been a much-appreciated financial resource for the community as well as an outstanding investment for the shareholders. "Malaga is committed to continuing this standard of excellence in the future," stated John R. Polen, President and CEO. 

With the celebration of twenty years of banking success, Malaga would like to thank its customers, business associates, community friends and shareholders for their loyalty and support. Everyone is invited to come by for cake, coffee, and Malaga Customer Rewards during the month long celebration through April 15th.

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. — March 18, 2005 — Malaga Financial Corporation (OTC:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of 6¼ cents per share to shareholders of record on March 31, 2005. According to John R. Polen, President and CEO, the dividend will be paid out on or about April 10, 2005.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at  www.malagabank.com. 

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA BANK OPENS THIRD BRANCH OFFICE

PALOS VERDES ESTATES, CALIF.,—JANUARY 7, 2005— Malaga Bank is pleased to announce the opening of its third branch office, at the corner of Rolling Hills Road and Crenshaw Boulevard, located in the Country Hills Shopping Center. "Now with three branch offices, Malaga Bank is better positioned to serve the banking needs of residents and businesses on the entire Palos Verdes Peninsula, South Torrance and South Redondo Beach," stated John R. Polen, President and CEO. The new Rolling Hills branch office will act as a temporary branch site while Malaga Bank builds a permanent 8,000 plus square foot office building on the northeastern corner of Crenshaw Boulevard and Rolling Hills Road to house its Real Estate Loan Center and a full service branch office. The new office building is scheduled to open in late spring of 2006. 

Malaga Bank is offering some very special features and benefits on a variety of accounts including great rates on money market and certificate of deposit accounts. Please stop by and visit Tamara Michelson, Retail Banking Manager, and her staff. While you are there, enjoy a cup of freshly brewed Starbucks® coffee, experience Malaga's legendary customer service, and take advantage of our great rates. The branch office is open six days a week: 9:00 a.m. to 5:00 p.m. Monday through Thursday, 9:00 a.m. to 6:00 p.m. on Friday, and 9:00 a.m. to 1:30 p.m. Saturday. The Rolling Hills branch office is located at 2927 Rolling Hills Road, Torrance, CA, tel.310.784.2000, www.malagabank.com. 

Contact: Malaga Bank, Palos Verdes Estates
Debbie Richardson, Executive Vice President
(310) 375-9000

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. — December 29, 2004 — Malaga Financial Corporation (OTC:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of $.05 per share to shareholders of record on January 10, 2005. According to John R. Polen, President and CEO, the dividend will be paid out on or about January 11, 2005.

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for almost 20 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
REPORTS STRONG 3RD QUARTER EARNINGS

PALOS VERDES ESTATES, CALIF. — November 15, 2004 — Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation ('MFC') parent company of Malaga Bank ('Malaga') today announced another strong quarter. Third quarter earnings helped contribute to a record nine months ended September 30, 2004 of $4,013,000, or $.75 per share which exceeds all previous similar periods.

Earnings for the quarter ended September 30, 2004 were $1,388,000, or $.26 per share, compared with $1,138,000, or $.22 per share for the same quarter in 2003. Diluted earnings per share were $.24 versus $.20 per share, respectively. Total assets as of September 30, 2004 were $493 million, an increase of $117 million over the same period last year.

As reported earlier, interest rates have risen in the short term. This has increased our cost of funds, which should ultimately be passed on through increases in our adjustable rate loan portfolio. We continue to direct our efforts toward increasing the loan portfolio to mitigate the potential for narrow interest rate margins in the future. We remain focused on meeting our loan production goals without reducing our loan quality even though there is greater competition in our marketplace. 

MFC is the holding company of Malaga Bank, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 19 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. — September 10, 2004 — Malaga Financial Corporation (OTC:MLGF). The Board of Directors of Malaga Financial Corporation ('MFC') announced today the declaration of a cash dividend in the amount of $.05 per share to shareholders of record on September 27, 2004. According to John R. Polen, President and CEO of the company, the dividend was declared as the result of the strong earnings the company and its Malaga Bank subsidiary had generated this year. The dividend will be paid out on or about September 29, 2004.

MFC is the holding company of Malaga Bank, 'Where Banking is All About You', a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 19 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

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MALAGA FINANCIAL CORPORATION
ANNOUNCES RECORD EARNINGS
FOR THE 2ND QUARTER

PALOS VERDES ESTATES, CALIF. — August 5, 2004 — Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (‘MFC’) parent company of Malaga Bank (‘MALAGA’) today announced its June 30, 2004 earnings. Earnings for the quarter ended June 30, 2004 were $1,395,000, or $.25 per share, compared with $1,227,000, or $.24 per share for the same quarter in 2003. Diluted earnings per share were $.24 versus $.23 per share, respectively. Total assets as of June 30, 2004 were $486 million, an increase of $132 million over the same period last year.

MFC is pleased to report another very strong quarter, in fact, the most profitable in its history. June 2004 was the strongest single month MFC has experienced with net income of more than $500,000. “These great earnings can be attributed to Malaga taking advantage of a very favorable interest rate environment. Additionally, lower interest rates contributed to a very strong loan demand, which allowed Malaga to significantly build its loan portfolio. Malaga is cautiously optimistic about the future in light of any changes the Federal Reserve Bank may make in the cost of funds”, stated John R. Polen, President and Chief Executive Officer.

In March 2004, Malaga acquired a corner parcel on a major artery to and from the Palos Verdes Peninsula. Malaga will construct a retail branch and loan office at that location, which is scheduled to open in late 2005. The addition of a third office positions MFC for continued market share growth in its primary service area. 

MFC is the holding company of Malaga Bank, ‘Where Banking is All About You’, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 19 years. Malaga Bank’s niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank’s Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
ANNOUNCES 1ST QUARTER EARNINGS
AND 5% STOCK DIVIDEND

PALOS VERDES ESTATES, CALIF. – April 29, 2004 – Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (‘MFC’) today announced its March 31, 2004 earnings. Earnings for the quarter ended March 31, 2004 were $1,230,000, or $.24 per share, compared with $1,266,000, or $.25 per share for the same quarter in 2003. Diluted earnings per share were $.22 versus $.23 per share, respectively. Total assets as of March 31, 2004 were $449,567,000.

“Based on the excellent performance in 2003 and the first quarter of 2004, the Board of Directors also declared a 5% stock dividend to shareholders of record as of May 3, 2004. The additional shares will be mailed to all shareholders by June 1, 2004,” stated John R. Polen, President and Chief Executive Officer.

MFC is the holding company of Malaga Bank, ‘Where Banking is All About You’, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 18 years. Malaga Bank's niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank's Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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MALAGA FINANCIAL CORPORATION
REPORTS EXCELLENT 2003 EARNINGS

PALOS VERDES ESTATES, CALIF. — March 1, 2004 — Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (MFC) is pleased to report earnings of $4,889,000 for the year ended December 31, 2003. Earnings for 2003 were up $135,000, or 3%, over 2002 earnings of $4,754,000. Earnings per share were $.95 for 2003 versus $.94 for 2002. Diluted earnings per share were $.88 for both periods. Total assets at December 31, 2003 were $419 million, up 25% for the year, and stockholders’ equity was $32,263,000, up $5,429,000.

Net income for the fourth quarter of 2003 was $1,267,000 or $.24 per share versus $1,260,000 or $.25 per share for the same period in 2002. The dilutive effects of a higher market value per share and the increased number of shares outstanding from the exercise of stock options were the reasons that the diluted earnings per share did not increase proportionately with the increase in income for both the year and fourth quarter 2004.

John Polen, President and CEO, stated, “We had a very successful and eventful year. In June, we formed MFC as the holding company for Malaga Bank to provide greater opportunities to raise capital and greater operating flexibility. In addition to record earnings, we had record loan growth of $75 million primarily through the direct generation of Southern California real estate loans. Shortly after its formation, MFC issued $5 million in trust preferred securities, of which $3 million was contributed to the Bank. We have retained the balance of those funds at MFC for working capital and investment.”

The 2003 financials reflect changes in the balance sheet as well as operations, which are indicative of the current business conditions. In order to maintain net interest income levels, with narrowed margins between loan yields and cost of funds, and the payoffs or refinances of higher rate loans, the Bank increased its loan origination activity to build the loan portfolio. As a result, the loan portfolio grew 25% during 2003. The increased level of loan payoffs and refinances generated substantial prepayment fee income.

“We are very encouraged that the company has been able to grow substantially and generate increased earnings in today’s interest rate environment where spreads have generally narrowed and seasoned loans have paid off at record levels. Once again, Malaga had no non-performing loans or loan losses in 2003. We are optimistic that we will continue to generate quality loans to build Malaga Bank’s own loan portfolio, and manage our net interest margins,” stated Mr. Polen.

MFC is the holding company of Malaga Bank, a full service community bank, ‘Where Banking is All About You’, that has served the financial needs of the affluent Palos Verdes Peninsula community for 19 years. Malaga Bank’s niche is outstanding customer service, where the individual banking needs of the customer are met through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in the financing of apartments, construction projects and single family residences throughout Southern California. The Bank’s Web site is located at www.malagabank.com.

Contact: John Polen, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
jpolen@malagabank.com

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PALOS VERDES ESTATES, CALIF. — December 3, 2003 — Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (‘MFC’) today announced revised net earnings for the three and nine months ended September 30, 2003. Net earnings were $3,622,000 ($.66 per share fully diluted) for the nine months and $1,151,000 ($.21 per share fully diluted) for the three months. This decrease in net earnings of $31,000 for the nine months and $18,000 for the three months was the result of revising the accruals for amortization and interest relating to the Trust Preferred Securities issued in June 2003.

We have attached a revised press release as follows:

MALAGA FINANCIAL CORPORATION
REPORTS EXCELLENT 3RD QUARTER EARNINGS FOR 2003

PALOS VERDES ESTATES, CALIF. — December 3, 2003 — Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (‘MFC’) today announced its September 30, 2003 earnings. MFC’s most significant asset is Malaga Bank, and therefore the earnings reported are primarily that of Malaga Bank. References to prior year financial information relate to Malaga Bank.

MFC’s consolidated earnings, for the nine months ended September 30, 2003, were $3,622,000 compared to $3,494,000 reported by Malaga Bank for the same period in 2002, with diluted earnings per share at $.66 versus $.63, respectively. Total assets were $376 million as of September 30, 2003, compared with $327 million a year earlier, representing an increase of 15%. “Year to date earnings for 2003 continue to exceed all previous years, which is encouraging considering that interest rate margins have narrowed for both Malaga Bank and the banking industry as a whole,” stated John R. Polen, President and Chief Executive Officer.

MFC’s third quarter 2003 earnings were $1,151,000 versus $1,174,000 reported by Malaga Bank for the same quarter in 2002. Diluted earnings per share were $.21 compared to $.22 for the previous year. During the third quarter, Malaga Bank experienced considerable loan asset growth as a result of record loan fundings, even with loan pay-offs being higher than normal.

MFC is the holding company of Malaga Bank, ‘Where Banking is All About You’, a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 18 years. Malaga Bank’s niche, or specialty, continues to be its standard of excellence in customer service while meeting the individual banking needs of customers through quality products and effective communications. Malaga Bank is primarily a real estate lender known for its expertise in financing apartments, construction projects and single family residences throughout Southern California. The Bank’s Web site is located at www.malagabank.com. 

Contact: John R. Polen, President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
jpolen@malagabank.com 

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MALAGA FINANCIAL CORPORATION
REPORTS EXCELLENT 2ND QUARTER EARNINGS FOR 2003

PALOS VERDES ESTATES, CALIF.—August 13, 2003—Malaga Financial Corporation (OTC:MLGF). Malaga Financial Corporation (‘MFC’) today announced its June 30, 2003 earnings.  As previously reported, MFC and Malaga Bank completed its reorganization whereby MFC became the holding company of Malaga Bank on June 19, 2003.  As of June 30, 2003, MFC’s significant asset is Malaga Bank, and the earnings reported are primarily that of Malaga Bank.

MFC’s consolidated earnings for the six months ended June 30, 2003 were $2,484,000 compared to $2,320,000 as reported by Malaga Bank for the same period in 2002 with diluted earnings per share at $.46 versus $.43, respectively. Total assets were $355 million as of June 30, 2003 compared with $324 million a year earlier, representing an increase of 9.6%.

Second quarter 2003 earnings were $1,218,000 versus $1,185,000 for the same quarter in 2002. Diluted earnings per share were $.22 compared to $.21 for the previous year.

In late June 2003, MFC issued $5 million in Trust Preferred Securities through one of its subsidiaries, and subsequently contributed $3 million into Malaga Bank as additional capital. The additional capital contributes to Malaga Bank’s already well capitalized status, and allows the Bank to take advantage of greater lending opportunities. Malaga Bank’s strong loan origination programs, which have been custom designed to enhance its loan portfolio, continue to steadily increase the Bank’s total asset base, stated John Polen, President and Chief Executive Officer.

Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 18 years.  Malaga offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy.  Malaga Bank is the largest community bank in the South Bay area and is well known for its “legendary” customer service ‘Where Banking is All About You’. The bank’s Web site is located at www.malagabank.com. 

Contact: John R. Polen, President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
jpolen@malagabank.com 

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MALAGA BANK – REPORTS
RECORD 1st QUARTER EARNINGS FOR 2003

PALOS VERDES ESTATES, CALIF.—June 9, 2003—Malaga FinancialCorporation On June 5, 2003 Malaga Bank became a wholly owned subsidiary of Malaga Financial Corporation (OTC:MLGF). All future financial releases on Malaga Bank will be reported on a consolidated basis by Malaga Financial Corporation rather than by Malaga Bank.

Malaga Bank announced the highest earnings reported in one single quarter in the history of theBank. Net income was $1,266,000 for the first quarter 2003, or $0.23 per share on a diluted basis.  These earnings represent a return on average equity of over 18%. “Malaga Bank’s earnings remained strong due to the continued loan demand for real estate financing in Southern California, excellent loan quality, and a favorable interest rate environment” stated John Polen, President and Chief Executive Officer.  

Earnings of $1,266,000 for first quarter 2003 increased by $131,000, or 12%, over the same quarter 2002 earnings of $1,135,000.  The diluted earnings per share were $0.23 compared to $0.21 for the previous year.  Total assets were $342 million for the first quarter of 2003, an increase of $4.3 million.

Malaga Bank has recently released a new real estate loan marketing campaign targeting a broader audience to heighten awareness of Malaga’s expertise in home, apartment and construction lending. This campaign has already resulted in increased loan production in the South Bay and surrounding communities.  We have also introduced a new slogan “Where Banking is All About You” that exemplifies our philosophy of excellence in customer service. We are using this slogan in billboard advertising, on cable television, in local newspapers and direct mail campaign.
Malaga Bank is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 18 years.  Malaga offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy.  Malaga Bank is the largest community bank in the South Bay area and is well known for its “legendary” customer service.  The bank’s Web site is located at www.malagabank.com. 

Contact: John R. Polen, President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
jpolen@malagabank.com 

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MALAGA BANK REPORTS
RECORD EARNINGS FOR 2002

Palos Verdes Estates, CA---March 31, 2003---Malaga Bank (OTCBB:MGAB)

MALAGA BANK is pleased and proud to report that 2002 was the most successful year in MALAGA bank’s 18 year history. Malaga’s asset base grew by $32 million, or approximately 10%, earnings per share realized 29% growth, and net operating income increased 38% over 2001. Net income for the year was $4,754,000 compared to $3,657,000 for the previous year, an increase of $1,097,000, or 30%. Diluted earnings per share were $.88 versus $.68, respectively.  

Net income for the fourth quarter 2002 was $1,260,000 compared with $1,096,000 for the same quarter in 2001, an increase of $163,000, or 15%. Diluted earnings per share were $.25 compared with $.20 for the same period in the previous year, an increase of 25%.  

MALAGA BANK increased its loan asset base by $24 million or 9%. This was accomplished in a loan market where many of our competitors were unable to achieve any asset growth at all due to the large volume of borrowers refinancing their adjustable rate mortgages to fixed rate loans with other lenders. MALAGA BANK attributes its success to a combination of factors: a very favorable interest rate environment, an extremely active real estate market, the excellent quality of Malaga bank’s loan portfolio, and our extremely loyal and faithful customers. In 2002 the Bank experienced no loan losses and had virtually no delinquencies. 

While we cannot assume that last year’s favorable interest rate environment will continue at its present level, we are confident that our core strengths will continue to serve Malaga bank and our shareholders well in the coming year.

MALAGA BANK is a full service community bank located on the Palos Verdes Peninsula that has served the financial needs of this affluent community for over 18 years. MALAGA offers a wide range of loan and deposit products and services that compete directly with the larger financial institutions while maintaining a strong relationship-based banking philosophy. MALAGA BANK is the largest community bank in the South Bay area and is well known for its “legendary” customer service.  The Bank’s Web site is located at www.malagabank.com. 

Contact: John R. Polen, President and Chief Executive Officer
Malaga Financial Corporation
310-375-9000
jpolen@malagabank.com 

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