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MALAGA FINANCIAL CORPORATION REPORTS THIRD QUARTER 2014 NET INCOME OF $2.8 MILLION PRE-TAX ROE 19.20%

PALOS VERDES ESTATES, CALIF.-October 14, 2014- Malaga Financial Corporation (OTCBB:MLGF) the parent company of Malaga Bank FSB, today reported net income for the quarter ended September 30, 2014 was $2,828,000 ($0.47 per share basic and fully diluted), an increase of $17,000 from income of $2,811,000 for the quarter ended June 30, 2014 and a decrease of $118,000 or 4% from net income of $2,946,000 ($0.50 per share basic and $0.49 per share fully diluted) for the quarter ended September 30, 2013. Net income for the nine months ended September 30, 2014 was $8,372,000 ($1.39 basic and fully diluted earnings per share) as compared to $8,714,000 ($1.47 basic and $1.46 fully diluted earnings per share) for the nine months ended September 30, 2013, a 4% decrease. Net income decreased from the prior year primarily due to an increase in allowance for loan losses resulting from growth in outstanding loans and decrease in capitalized compensation related costs due to decrease in loans originated. Net income for the first nine months of 2014 resulted in an annualized pre-tax return on average equity of 19.20%.

The Company did not have any delinquent loans or real estate owned at September 30, 2014. The Company’s allowance for loan losses was $2,963,000, or 0.34% of total loans, at September 30, 2014.

Net interest income totaled $7,445,000 in the third quarter of 2014, and was comparable to third quarter of 2013. During the same period, average interest earning assets increased by $66 million while interest rate spread decreased from 3.44% to 3.20%. The decrease in the interest spread was due to a 0.37% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.13%.

Operating expenses increased 3% in the third quarter of 2014, to $2,649,000 from $2,571,000 in the third quarter of 2013. Increased costs resulted primarily from decrease in capitalized compensation related costs due to decrease in loans originated.

Randy C. Bowers, President and CEO, remarked, “Results of operations for the first nine months of 2014 reflect the continued execution of our business plan. Earnings remain strong and asset quality is excellent. We continue to achieve moderate growth in both our deposit base and loan portfolio. We are cautiously optimistic as we plan for the remainder of 2014 and beyond.”

Malaga’s total assets increased by 7% to $937 million at September 30, 2014 compared to $872 million at September 30, 2013. The loan portfolio at September 30, 2014 was $865 million, an increase of $55 million or 7% from September 30, 2013. 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. Deposits totaled $699 million as of September 30, 2014, a $71 million or 11% increase from $628 million at September 30, 2013. FHLB borrowings totaled $105 million at September 30, 2014, a $13 million or 11% decrease from $118 million at September 30, 2013. The weighted average cost of funds for the third quarter of 2014 was 0.78% versus 0.91% for the third quarter of 2013. The decrease was due primarily to a higher mix of lower cost state funds and overnight Federal Home Loan Bank borrowings.

As of September 30, 2014, 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 13.21% and 23.34%, respectively, at September 30, 2014 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 40th consecutive quarter.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, 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 41st CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-September 12, 2014- Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 17.5 cents per share to shareholders of record on September 26, 2014. The dividend will be paid out on or about October 6, 2014. Randy C. Bowers, President and CEO, remarked, “Earnings and operations continue to be strong and stable and our capital levels remain high. We are pleased to reward our shareholders with a 17.5 cent quarterly dividend which represents a 3.50% annualized yield based on our closing price yesterday of $20.00. We look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It was recently ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2013. This will be the 5th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 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 BANK NAMED #1 HEALTHIEST BANK IN AMERICA

PALOS VERDES ESTATES, CALIF.-August 12, 2014- Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank, FSB, today reported that DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers, has just released the 2014 edition of its Top 200 Healthiest Banks in America. Malaga Bank topped the list of over 6,500 banks across the U.S.. Each year DepositAccounts.com evaluates the financial health of every federally insured bank in the United States – more than 6,500 total. Each institution is graded on a number of factors, including capitalization, deposit growth, and loan to reserve ratios, in order to determine a comprehensive health score, with DepositAccounts.com recognizing those institutions who have shown exceptional fiduciary responsibility in its 2014 edition of the Top 200 Healthiest Banks in America.

A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated bank page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. In its 30th 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 REPORTS SECOND QUARTER 2014 NET INCOME OF $2.8 MILLION PRE-TAX ROE 19.37%

PALOS VERDES ESTATES, CALIF.- July 16, 2014- Malaga Financial Corporation (OTCBB:MLGF) the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2014 was $2,811,000 ($0.46 per share basic and fully diluted), an increase of $78,000 from income of $2,733,000 for the quarter ended March 31 ,2014 and a decrease of $253,000 or 8% from net income of $3,064,000 ($0.51 per share basic and fully diluted) for the quarter ended June 30, 2013. Net income for the six months ended June 30, 2014 was $5,544,000 ($0.92 basic and fully diluted earnings per share) as compared to $5,768,000 ($0.97 basic and fully diluted earnings per share) for the six months ended June 30, 2013, a 4% decrease. Net income decreased from the prior year primarily due to decrease in net interest income and increase in other operating expense. Net income for the first six months of 2014 resulted in an annualized pre-tax return on average equity of 19.26%.

The Company did not have any delinquent loans or real estate owned at June 30, 2014. The Company’s allowance for loan losses was $2,901,000, or 0.34% of total loans, at June 30, 2014.

Net interest income totaled $7,463,000 in the second quarter of 2014, a decrease of $180,000 or 2% from the second quarter of 2013. This decrease resulted from a decrease in the interest spread from 3.60% to 3.27%. The decrease in the interest spread was due to a 0.48% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.15%.

Operating expenses increased 10% in the second quarter of 2014, to $2,767,000 from $2,508,000 in the second quarter of 2013. Increased costs resulted primarily from decrease in capitalized compensation related costs due to decrease in loans originated and professional service fees.

Randy C. Bowers, President and CEO, remarked, “We are generally satisfied with our results for the first half of 2014 considering the challenges facing the banking industry as a whole. Earnings continue to be strong and stable and asset quality is excellent. Expenses are well controlled and we are experiencing growth in our loan portfolio and total assets. We wish to recognize and thank our colleagues for their hard work in achieving these results”

Malaga’s total assets increased by 6% to $926 million at June 30, 2014 compared to $870 million at June 30, 2013. The loan portfolio at June 30, 2014 was $856 million, an increase of $51 million or 6% from June 30, 2013. 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 $567 million as of June 30, 2014, a $16 million or 3% increase from $551 million at June 30, 2013. The continued retail and wholesale deposit growth combined with earnings growth and increase in FHLB borrowings was used to fund loan growth of $51 million. The weighted average cost of funds for the second quarter of 2014 was 0.81% versus 0.96% for the second quarter of 2013. The decrease was due primarily to a higher mix of lower cost state funds and overnight Federal Home Loan Bank borrowings.

As of June 30, 2014, 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 13.17% and 20.87%, respectively, at June 30, 2014 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the second quarter, Malaga Financial paid a quarterly dividend for the 39th consecutive quarter.

Mr. Bowers concluded, “Half way through our 30th year serving the South Bay we look forward to continuing to support our community and its various organizations, rewarding our shareholders and providing a safe and friendly place to bank locally.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, 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 40th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-June 13, 2014- Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 17.5 cents per share to shareholders of record on June 27, 2014. The dividend will be paid out on or about July 7, 2014. Randy C. Bowers, President and CEO, remarked, “Earnings and operations continue to be strong and stable and our capital levels remain high. We are pleased to reward our shareholders with a 17.5 cent quarterly dividend which represents a 3.50% annualized yield based on our closing price yesterday of $20.00. We look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It was recently ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2013. This will be the 5th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 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 FIRST QUARTER 2014 NET INCOME OF $2.7 MILLION PRE-TAX ROE 19.16%

PALOS VERDES ESTATES, CALIF. April 24, 2014- Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2014 was $2,733,000 ($0.46 per share basic and $0.45 fully diluted), an increase of $29,000 or 1% from net income of $2,704,000 ($0.46 per share basic and fully diluted) for the quarter ended March 31, 2013. Net income in the first quarter resulted in a pre-tax return on average equity of 19.16%.

The Company did not have any real estate owned and only one delinquent consumer loan in the amount of $5,000 at March 31, 2014. The Company’s allowance for loan losses was $2,882,000, or 0.34% of total loans, at March 31, 2014.

Net interest income totaled $7,373,000 in the first quarter of 2014, an increase of $202,000 or 3% from the first quarter of 2013. This increase resulted from an increase in average interest earning assets of $60,095,000, offset by a decrease in the interest spread from 3.44% to 3.30%. The decrease in the interest spread was due to a 0.40% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.26%.

Operating expenses increased 4% in the first quarter of 2014, to $2,788,000 from $2,686,000 in the first quarter of 2013. Increased costs were primarily related to compensation and professional service fees.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report earnings are strong and stable and our overall financial health is 'superior' as evidenced by our 25 consecutive quarters of 5 star ratings from Bauer Financial, Inc. 'Five stars is [their] highest rating and an indication that our institution is one of the strongest in the United States.' A primary contributor to that success is how our team of associates continues to provide exceptional service to our clients."

Malaga's total assets increased by 8% to $910 million at March 31, 2014 compared to $843 million at March 31, 2013. The loan portfolio at March 31, 2014 was $844 million, an increase of $64 million or 8% from March 31, 2013. 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 $598 million as of March 31, 2014, a $35 million or 6% increase from $562 million at March 31, 2013. The continued retail deposit growth combined with earnings growth and increase in FHLB borrowings was used to fund loan growth of $64 million. The weighted average cost of funds for the first three months of 2014 was 0.82% versus 1.08% for the first three months of 2013. The decrease was due primarily to a higher mix of lower cost overnight Federal Home Loan Bank borrowings.

As of March 31, 2014, 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 13.20% and 22.90%, respectively, at March 31, 2014 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 38th consecutive quarter.

Mr. Bowers concluded, "As we begin our 30th year serving the South Bay we look forward to continuing to support our community and its various organizations, reward our shareholders and to provide a safe and friendly place to encourage banking locally."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, 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 39th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-March 14, 2014- Malaga Financial Corporation (OTCBB:MLGF), Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 17.5 cents per share to shareholders of record on March 28, 2014. The dividend will be paid out on or about April 4, 2014. Randy C. Bowers, President and CEO, remarked, "Our earnings continue to be strong and stable and asset quality remains high. As a result we are able to reward our shareholders with a 17.5 cent quarterly dividend which represents a 3.59% annualized yield based on our closing price yesterday of $ 19.50. In addition, today we are celebrating the 29th anniversary of the opening of Malaga Bank on March 14, 1985. We look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 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 CONSISTENT STRONG EARNINGS - REWARDS SHAREHOLDERS WITH SPECIAL YEAR-END DIVIDEND

Palos Verdes Estates, CA – January 27, 2014 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2013 was $11,494,000 ($1.94 basic and $1.93 fully diluted earnings per share) as compared to $11,689,000 ($1.98 basic and $1.96 fully diluted earnings per share) for the twelve months ended December 31, 2012, a 2% decrease. Net income for the quarter ended December 31, 2013 was $2,780,000 ($0.47 basic and fully diluted earnings per share), an increase of $23,000 or 1% from net income of $2,757,000 ($0.47 basic and $0.46 fully diluted earnings per share) for the quarter ended December 31, 2012. Earnings for the twelve months ended December 31, 2013 resulted in a pre-tax return on average equity of 21.06%.

The Company did not have any delinquent loans or foreclosed real estate owned at December 31, 2013. The Company’s allowance for loan losses was $2,866,000, or 0.35% of total loans, at December 31, 2013.

For 2013, net interest income totaled $29,644,000, an increase of $141,000 or 0.5% from 2012. This increase reflected higher average interest-earning assets of $6.5 million, partially offset by decrease of 0.09% in the interest rate spread to 3.46%. The decrease in the interest rate spread is primarily attributable to a decrease in yield on average interest-earning assets of 0.42%, primarily from a decrease in loan portfolio yield. Partially offsetting this was a decrease of 0.33% in the average cost of funds. The decrease in the average cost of funds was due to a combination of maturity and repricing of certificates of deposit at lower rates and a higher mix of lower cost overnight Federal Home Loan Bank borrowings.

Operating expenses remained stable with a nominal decrease of $82,000 or 1% to $10,444,000 in 2013 from $10,526,000 in 2012.

Randy C. Bowers, President and CEO, commented, “We are pleased to report consistent strong and stable earnings for both the 4th quarter and the full year. These results have allowed us to declare a special year end 2013 dividend for the second consecutive year. We appreciate the loyalty of our shareholders and are delighted to be able to enhance their return on investment.”

Malaga’s total assets increased $35.8 million or 4% to $887 million at December 31, 2013. The loan portfolio at December 31, 2013 was $827 million, an increase of $44 million or 6% from December 31, 2012. 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 $574 million as of December 31, 2013, a $30 million or 5% increase from $544 million at December 31, 2012. The retail deposit growth was used primarily to fund the increase in loans. FHLB borrowings decreased $2 million or 2% from $130 million at December 31, 2012 to $128 million at December 31, 2013.

As of December 31, 2013, 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 13.36% and 23.10%, respectively, at December 31, 2013, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 17.5 cents per share, payable in January 2014 and a special dividend of 10 cents per share payable in 2013. The quarterly dividend reflected a 17% increase in the quarterly dividend amount in effect for the past four quarters.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985 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 ANNOUNCES SPECIAL YEAR END 2013 CASH DIVIDEND IN ADDITION TO INCREASED FIRST QUARTER 2014 DIVIDEND.

PALOS VERDES ESTATES, CALIF. - December 4, 2013 - Malaga Financial Corporation (OTCBB:MLGF). Malaga Financial Corporation announced today that its Board of Directors had declared a special cash dividend in the amount of 10 cents per share payable to shareholders of record at the close of business on December 18, 2013. The dividend will be paid on or about December 26, 2013. In addition, an increase in the quarterly dividend to 17.5 cents was declared payable to shareholders of record at the close of business on December 20, 2013 to be paid on or about January 2, 2014. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong earnings and capital levels allow us to reward our loyal shareholders with a special year end dividend in addition to an increase in the amount of our 39th consecutive quarterly dividend. This will result in total dividends paid in 2013 of 70 cents per share for a 3.73% annual yield based on a closing share price of $18.75 on November 26, 2013. We recently completed our 28th year of operations and look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 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 THIRD QUARTER 2013 NET INCOME OF $2.9 MILLION PRE-TAX ROE 21.48%

PALOS VERDES ESTATES, CALIF. - October 28, 2013 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2013 was $2,946,000 ($0.50 basic and $0.49 fully diluted earnings per share), an increase of $185,000 or 7% from net income of $2,761,000 ($0.47 basic and $0.46 fully diluted earnings per share) for the quarter ended September 30, 2012. Net income for the nine months ended September 30, 2013 was $8,714,000 ($1.47 basic and $1.46 fully diluted earnings per share) as compared to $8,932,000 ($1.51 basic and $1.50 fully diluted earnings per share) for the nine months ended September 30, 2012, a 2% decrease. Net income for the third quarter increased primarily due to an increase in net interest income. Net income for the first nine months of 2013 resulted in an annualized pre-tax return on average equity of 21.48%.

The Company did not have any delinquent loans or real estate owned at September 30, 2013. The Company’s allowance for loan losses was $2,792,000, or 0.34% of total loans, at September 30, 2013.

Net interest income totaled $7,446,000 in the third quarter of 2013, an increase of $295,000 or 4% from the third quarter of 2012. The increase in net interest income reflected higher average interest-earning assets of $44 million, partially offset by a decrease in the interest spread from 3.47% to 3.44% from the third quarter 2012 to the third quarter of 2013. The decrease in the interest spread was due to a 0.37% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.34%.

Operating expenses decreased 5% in the third quarter of 2013, to $2,571,000 from $2,699,000 in the third quarter of 2012. Decreased costs resulted primarily from an increase in capitalized compensation related costs due to an increase in loans originated.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report a 7% increase in earnings compared with the 3rd quarter of last year. This positive trend is the result of growth in our high quality loan portfolio and continued containment of expenses. We are especially thankful to our dedicated employees for their efforts in helping to achieve these results."

Malaga’s total assets increased 4% to $872 million at September 30, 2013 compared to $836 million at September 30, 2012. Fed Funds Sold increased $18 million as of September 30, 2013 due to an increase in on-balance sheet liquidity. The loan portfolio at September 30, 2013 was $810 million, an increase of $19 million or 2% from September 30, 2012. 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 $568 million as of September 30, 2013, a $49 million or 10% increase from $519 million at September 30, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $27 million or 19% from $145 million at September 30, 2012 to $118 million at September 30, 2013. The weighted average cost of funds for the third quarter of 2013 was 0.91% versus 1.25% for the third quarter 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of September 30, 2013, 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 13.39% and 23.41%, respectively, at September 30, 2013 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 six offices located in the South Bay area of Los Angeles. For over 28 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 38th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. - September 13, 2013 - Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 15 cents per share to shareholders of record on September 27, 2013. The dividend will be paid out on or about October 7, 2013.

Randy C. Bowers, President and CEO, remarked, “We are pleased to announce our 38th consecutive quarterly dividend. Throughout the financial crisis over the last 5+ years the disciplined execution of our business plan has resulted in strong earnings and allowed us to consistently reward our shareholders for their loyal support. We look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker Magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 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 SECOND QUARTER 2013 NET INCOME OF $3.1 MILLION PRE-TAX ROE 21.59%

Palos Verdes Estates, CA - July 29, 2013 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2013 was $3,064,000 ($0.51 per share basic and fully diluted), a decrease of $53,000 or 2% from net income of $3,117,000 ($0.52 per share basic and fully diluted) for the quarter ended June 30, 2012. Net income for the six months ended June 30, 2013 was $ 5,768,000 ($0.97 basic and fully diluted earnings per share) as compared to $6,171,000 ($1.04 basic and fully diluted earnings per share) for the six months ended June 30, 2012, a 7% decrease. Net income decreased primarily due to a decrease in net interest income and an increase in the provision for loan losses due to increase in total loans outstanding. Net income for the first six months of 2013 resulted in an annualized pre-tax return on average equity of 21.59%.

The Company did not have any delinquent loans or real estate owned at June 30, 2013. The provision for loan losses increased $84,000 in the second quarter 2013 as compared to second quarter 2012, due to increase in total loans outstanding. The Company's allowance for loan losses was $2,831,000, or 0.35% of total loans, at June 30, 2013.

Net interest income totaled $7,643,000 in the second quarter of 2013, a decrease of $88,000 or 1% from the second quarter of 2012. This decrease resulted from a decrease in the interest spread from 3.71% to 3.60%, partially offset by an increase of $19 million or 2% in average interest earning assets to $827 million. The decrease in the interest spread was due to a 0.42% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.31%.

Operating expenses decreased 3% in the second quarter of 2013, to $2,508,000 from $2,577,000 in the second quarter of 2012. Decreased costs resulted primarily from an increase in capitalized compensation related costs due to an increase in loans originated.

Randy C. Bowers, President and CEO, remarked, "We are pleased with our continued strong earnings and the exceptional performance of the loan portfolio in the second quarter. The consistent execution of our business plan and focus on generating high quality earning assets while controlling costs has allowed us to reward our shareholders with our 37th consecutive quarterly dividend".

Malaga's total assets increased 5% to $870 million at June 30, 2013 compared to $833 million at June 30, 2012. Fed Funds Sold increased $31 million as of June 30, 2013 due to an increase in on-balance sheet liquidity. The loan portfolio at June 30, 2013 was $805 million, an increase of $11 million or 1% from June 30, 2012. 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 $551 million as of June 30, 2013, a $42 million or 8% increase from $509 million at June 30, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $21 million or 14% from $155 million at June 30, 2012 to $134 million at June 30, 2013. The weighted average cost of funds for the second quarter of 2013 was 0.96% versus 1.27% for the second quarter 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of June 30, 2013, 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 13.21% and 22.92%, respectively, at June 30, 2013 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 six offices located in the South Bay area of Los Angeles. For over 28 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 37th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. - June 13, 2013 - Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 15 cents per share to shareholders of record on June 28, 2013. The dividend will be paid out on or about July 8, 2013.

Malaga Bank was ranked the #1 Community Bank in California by American Banker magazine in their May 2013 issue. Randy C. Bowers, President and CEO, remarked, "We are pleased to once again receive recognition as one of the top performing financial institutions in the nation. On numerous occasions over the last several years we have been recognized for both our financial performance and the safety of our institution. We look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker Magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 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 FIRST QUARTER 2013 NET INCOME OF $2.7 MILLION PRE-TAX ROE 20.47%

Palos Verdes Estates, CA – April 25, 2013 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2013 was $2,704,000 ($0.46 per share basic and fully diluted), a decrease of $350,000 or 11% from net income of $3,054,000 ($0.52 per share basic and fully diluted) for the quarter ended March 31, 2012. Net income decreased primarily due to a decrease in net interest income. Net income in the first quarter resulted in a pre-tax return on average equity of 20.47%.

The Company did not have any delinquent loans or real estate owned at March 31, 2013. The Company’s allowance for loan losses was $2,764,000, or 0.35% of total loans, at March 31, 2013.

Net interest income totaled $7,171,000 in the first quarter of 2013, a decrease of $484,000 or 6% from the first quarter of 2012. This decrease resulted from a decrease in the interest spread from 3.66% to 3.44%. The decrease in the interest spread was due to a 0.49% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.27%.

Operating expenses increased 5% in the first quarter of 2013, to $2,686,000 from $2,563,000 in the first quarter of 2012. Increased costs resulted primarily from our branch expansion in August 2012 related to compensation and office related costs.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report strong quarterly earnings in spite of the challenges presented by historically low interest rates and a weak economy. Our loan portfolio is performing exceptionally well and we continue to maintain tight control over expenses.”

Malaga’s total assets increased slightly to $843 million at March 31, 2013 compared to $833 million at March 31, 2012. The loan portfolio at March 31, 2013 was $780 million, a decrease of $19 million or 2% from March 31, 2012. 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 $562 million as of March 31, 2013, a $68 million or 14% increase from $494 million at March 31, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $67 million or 40% from $166 million at March 31, 2012 to $99 million at March 31, 2013. The weighted average cost of funds for the first three months of 2013 was 1.08% versus 1.35% for the first three months of 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of March 31, 2013, 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 13.38% and 22.92%, respectively, at March 31, 2013 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 35th consecutive quarter.

Mr. Bowers concluded, “Although the operating environment for banks remains difficult, our focus on quality loans and cost control has resulted in strong quarterly pre-tax return on average equity of 20.47%. We anticipate some growth in our loan portfolio during the remainder of this year which should help offset increasing expenses and enhance profitability. We look forward to continuing to support our community, reward our shareholders and to provide a safe and friendly place to bank locally.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over 28 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 35th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF. - March 14, 2013 - Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 15 cents per share to shareholders of record on March 29, 2013. The dividend will be paid out on or about April 5, 2013. Randy C. Bowers, President and CEO, remarked, “We are pleased to have reported our 7th consecutive year of record profits in 2012 and to have received a top 5 Star rating by an independent rating firm, Bauer Financial Inc. for 21 consecutive quarters. In addition, today we are celebrating the 28th anniversary of the opening of Malaga Bank on March 14, 1985. We look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 ANNOUNCES 20% INCREASE IN QUARTERLY DIVIDEND

Palos Verdes Estates, CA - January 18, 2013 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2012 was $11,689,000 ($1.98 basic and $1.96 fully diluted earnings per share) as compared to $11,115,000 ($1.90 basic and $1.89 fully diluted earnings per share) for the twelve months ended December 31, 2011, a 5% increase. Net income for the quarter ended December 31, 2012 was $2,757,000 ($0.47 basic and $0.46 fully diluted earnings per share), a decrease of $149,000 or 5% from net income of $2,906,000 ($0.50 basic and fully diluted earnings per share) for the quarter ended December 31, 2011. Earnings for the twelve months ended December 31, 2012 were the highest in Malaga’s history and resulted in a pre-tax return on average equity of 23.54%.

The Company did not have any delinquent loans or foreclosed real estate owned at December 31, 2012. The Company’s allowance for loan losses was $2,762,000, or 0.35% of total loans, at December 31, 2012.

For 2012, net interest income totaled $29,503,000, an increase of $873,000 or 3% from 2011. This increase resulted primarily from an increase of 0.10% in the interest rate spread to 3.55%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.44%, which exceeded the 0.34% decline in the weighted average yield on interest earning assets. The decrease in the weighted average cost of funds was due to maturity and repricing of certificates of deposit at lower rates and a $39 million decrease in the outstanding Federal Home Loan Bank borrowings, which have higher interest rates than the Company's other liabilities.

Operating expenses remained stable with a nominal increase of $221,000 or 2% to $10,526,000 in 2012 from $10,305,000 in 2011.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record earnings for the 7th consecutive year. Our strong capital position and earnings have allowed us to increase our most recent quarterly dividend by 20% in addition to declaring a special year end 2012 dividend. Our results for the year are the result of the continued execution of our business plan emphasizing high asset quality and a focus on controlling costs."

Malaga’s total assets increased $23.9 million or 3% to $851 million at December 31, 2012. The loan portfolio at December 31, 2012 was $783 million, a decrease of $12 million or 1% from December 31, 2011. 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 $544 million as of December 31, 2012, a $53 million or 11% increase from $491 million at December 31, 2011. The retail deposit growth was used primarily to increase on-balance sheet liquidity and to repay FHLB borrowings. FHLB borrowings decreased $39 million or 23% from $169 million at December 31, 2011 to $130 million at December 31, 2012.

As of December 31, 2012, 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 13.05% and 22.82%, respectively, at December 31, 2012, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 15 cents per share, payable in January 2013 and a special dividend of 10 cents per share payable in 2012. The quarterly dividend reflected a 20% increase in the quarterly dividend amount in effect for the past four quarters.

Mr. Bowers concluded, "We are honored that earlier this year we were ranked #1 of the 100 largest publicly traded thrifts in the United States for the third consecutive year by SNL Financial and as one of the 349 safest banks in the United States by MSN.money using the complex Texas Ratio. In addition, for over ten years, Malaga Bank has consistently received premier Top 5-Star rating by one of the nation’s leading independent bank rating and research firms, BauerFinancial Inc. These recognitions are 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 six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 ANNOUNCES 20% INCREASE IN QUARTERLY DIVIDEND

Palos Verdes Estates, CA - December 14, 2012 - Malaga Financial Corporation (OTCBB:MLGF). Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 15 cents per share to shareholders of record on January 3, 2013. The dividend will be paid out on or about January 10, 2013. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce a dividend increase to be paid in January 2013 in addition to the special dividend of 10 cents which will be paid before 2012 year end. This is our 34th consecutive quarterly cash dividend in addition to the special dividend and is possible as a result of record earnings for the first nine months of the year and our strong capital position.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 ANNOUNCES SPECIAL YEAR END 2012 CASH DIVIDEND

Palos Verdes Estates, CA - December 3, 2012 - Malaga Financial Corporation (OTCBB:MLGF). Malaga Financial Corporation announced today that its Board of Directors had declared a special cash dividend in the amount of 10 cents per share payable to shareholders of record at the close of business on December 17, 2012. The dividend will be paid on or about December 24, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with this additional 10 cent dividend. This dividend results in total dividends paid in 2012 of 60 cents per share for a 3.58% annual yield based on a closing share price of $16.75 on November 26, 2012. We recently completed our 27th year of operations and look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 3RD QUARTER AND YEAR-TO-DATE-EARNINGS

Palos Verdes Estates, CA - October 25, 2012 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2012 was $2,761,000 ($0.47 basic and $0.46 fully diluted earnings per share), an increase of $12,000 from net income of $2,749,000 ($0.47 basic and fully diluted earnings per share) for the quarter ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $8,932,000 ($1.51 basic and $1.50 fully diluted earnings per share) as compared to $8,209,000 ($1.40 basic and $1.39 fully diluted earnings per share) for the nine months ended September 30, 2011, a 9% increase. Earnings for the third quarter and first nine months were the highest in Malaga Financial’s history for those periods and resulted in an annualized pre-tax return on average equity of 24.05%.

At September 30, 2012, the Company reported one delinquent loan and no real estate owned. The delinquent loan is a single family loan with an outstanding principal balance of $87,000 and was one payment delinquent. The Company’s allowance for loan losses was $2,817,000, or 0.36% of total loans, at September 30, 2012.

Net interest income totaled $7,151,000 in the third quarter of 2012, a small decrease from $7,169,000 in the third quarter of 2011. This decrease resulted primarily due to net increase of $46,000 in amortization of net deferred loan costs. Our interest rate spread was 3.47% in the third quarter of 2012 and was comparable to third quarter of 2011 at 3.46%.

Operating expenses increased 5% in the third quarter of 2012, to $2,699,000 from $2,570,000 in the third quarter of 2011. The increase is due primarily to costs related to the opening of our Torrance-Skypark branch in August 2012.

Randy C. Bowers, President and CEO, remarked, “Our financial strength has allowed us to continue to expand our retail banking operations and open our new Torrance-Skypark Branch.”

Malaga’s total assets reached $836 million at September 30, 2012 compared to $821 million at September 30, 2011. The loan portfolio at September 30, 2012 was $791 million, an increase of $4 million from September 30, 2011. 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 $519 million as of September 30, 2012, a $31 million or 6% increase from $488 million at September 30, 2011. The retail deposit growth was used to repay FHLB borrowings, which decreased $25 million or 16% from $170 million at September 30, 2011 to $145 million at September 30, 2012. The weighted average cost of funds for the third quarter of 2012 was 1.25% versus 1.69% for the third quarter of 2011.

As of September 30, 2012, 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 13.06% and 21.56%, respectively, at September 30, 2012, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

Mr. Bowers concluded, “We are pleased that we were rated as one of the 349 safest banks in the United States by MSN.money using the complex Texas Ratio. Of the 16 California-based banks receiving this recognition, Malaga Bank is the only institution both headquartered in the South Bay and with all of its branches serving communities in that area.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 ANNOUNCES 33rd CONSECUTIVE QUARTERLY CASH DIVIDEND

Palos Verdes Estates, CA - October 1, 2012 - 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 October 12, 2012. The dividend will be paid out on or about October 16, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 33rd consecutive quarterly dividend. This dividend results in a 2.78% annual yield based on a closing share price of $18.00 on September 28, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 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 BANK OPENS NEW TORRANCE-SKYPARK BRANCH

Palos Verdes Estates, CA - August 6, 2012 - Malaga Bank, FSB, today announced the expansion of its banking operations with the opening of their new Torrance-Skypark Branch on Monday August 6, 2012.

"We're very excited to announce this addition to our branch locations and are pleased that the continued financial strength of Malaga Bank has allowed us to expand our retail banking network," stated Randy C. Bowers, President and CEO.

"As recently announced on MSN.money, Malaga Bank was rated one of the 16 safest banks in California - and one of the 349 safest banks in the United States. In addition, for over ten years Malaga Bank has been recommended by Bauer Financial Inc., a leading independent bank and credit union rating firm. We have earned Bauer's highest 5-Star rating for 18 consecutive quarters. This recognition acknowledges the exceptional financial strength of our organization."

Randy Bowers concluded, "We invite everyone to stop by and visit Mark Smith, Senior Vice President, Business Banking, Lydia Leung, Assistant Retail Banking Manager and their staff. While you're there, enjoy a cup of freshly brewed gourmet coffee and experience the legendary customer service that has become Malaga Bank's trademark."

The Torrance-Skypark Branch is open five days a week: 9:00 a.m. to 5:00 p.m. Monday through Thursday and 9:00 a.m. to 6:00 p.m. on Friday. Malaga's Torrance-Skypark Branch includes a full service ATM and is located at 23670 Hawthorne Boulevard, Suite 101a, Torrance, CA 90505. Tel. 310.544-5180.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is the largest community bank headquartered on the Palos Verdes Peninsula, now having six separate banking offices located in the South Bay area of Los Angeles. Since 1985 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 RANKED IN TOP 5% OF NATION'S SAFEST BANKS

Palos Verdes Estates, CA - August 3, 2012 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced their rating as one of the 349 safest banks in the United States. Using the complex Texas Ratio developed in the 1980s to determine fiscal safety, MSN.money rated over 7,300 banks in the country to find which were likely to be the safest. Only 349 institutions across the nation received a perfect Texas Ratio score.

Of the 16 California-based banks receiving this recognition, Malaga Bank is the only institution both headquartered in the South Bay and with all its branches serving communities in that area.

Malaga Bank's branches are located in Palos Verdes Estates, Rolling Hills Estates, San Pedro and Torrance. The new Torrance-Skypark Branch in Malaga's Torrance Loan Center is expected to open later this month.

Randy C. Bowers, President & CEO remarked, "We are pleased to acknowledge this recognition, as it reinforces Malaga Bank's performance for over 27 years in the South Bay. In addition, we were again ranked the #1 Thrift in the United States by SNL Financial for the third consecutive year. Using their 6 key performance metrics, Malaga was ranked #1 when measured against the top 100 performing thrifts."

Mr. Bowers concluded, "For over ten years, Malaga Bank has been recommended by Bauer Financial Inc. - a leading independent bank and credit union rating firm. Malaga is proud of our top 5-Star Rating for financial strength and stability. We have earned Bauer's 5-Star rating for 18 consecutive quarters, as they reported on March 31, 2012. These recognitions acknowledge the overall financial strength of our organization, and our incredible customer loyalty speaks to the legendary customer service for which Malaga Bank is so well known."

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. Since 1985 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 2ND QUARTER AND YEAR-TO-DATE EARNINGS

Palos Verdes Estates, CA - July 16, 2012 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2012 was $3,117,000 ($0.52 basic and fully diluted earnings per share), an increase of $369,000 or 13% from net income of $2,748,000 ($0.47 basic and $0.46 fully diluted earnings per share) for the quarter ended June 30, 2011. Net income for the six months ended June 30, 2012 was $6,171,000 ($1.04 basic and fully diluted earnings per share) as compared to $5,460,000 ($0.93 basic and $0.92 fully diluted earnings per share) for the six months ended June 30, 2011, a 13% increase. Earnings for the second quarter and first six months were the highest in Malaga Financial's history for those periods and resulted in an annualized pre-tax return on average equity of 25.26%.

At June 30, 2012, the Company reported one delinquent loan and no real estate owned. The delinquent loan is a single family loan with an outstanding principal balance of $2.7 million and was one payment delinquent. The Company's allowance for loan losses was $2,920,000, or 0.37% of total loans, at June 30, 2012.

Net interest income totaled $7,731,000 in the second quarter of 2012, up $606,000 or 9% from the second quarter of 2011. This increase resulted from a $7 million or 1% increase in average interest earning assets to $809 million, and an increase of 0.29% in the interest rate spread to 3.71%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.53%, which exceeded the 0.24% decline in the weighted average yield on interest earning assets.

Operating expenses remained stable with a small decrease of less than 1% in the second quarter of 2012, to $2,577,000 from $2,583,000 in the second quarter of 2011.

Randy C. Bowers, President and CEO, remarked, "As we continue to execute our business plan the results are reflected in another quarter of record earnings. Our pre-tax annualized ROE of over 25% during the quarter allows us to reward our shareholders and employees while also supporting our community both financially and through our volunteer efforts."

Malaga's total assets reached $833 million at June 30, 2012 compared to $824 million at June 30, 2011. The loan portfolio at June 30, 2012 was $794 million, an increase of $13 million or 2% from June 30, 2011. 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 $509 million as of June 30, 2012, a $22 million or 5% increase from $487 million at June 30, 2011. The retail deposit growth was used to repay wholesale deposits and FHLB borrowings, which decreased $24 million or 10% from $232 million at June 30, 2011 to $208 million at June 30, 2012. The weighted average cost of funds for the second quarter of 2012 was 1.27% versus 1.80% for the second quarter of 2011.

As of June 30, 2012, 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 12.87% and 20.95%, respectively, at June 30, 2012, significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Mr. Bowers concluded, "We are pleased that our performance in 2011 resulted in our being ranked #1 of the 100 largest publicly traded thrifts in the United States by SNL Financial. This is the 3rd consecutive year that we have received this recognition."

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. Since 1985 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 ANNOUNCES 32nd CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-June 28, 2012- 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 July 16, 2012. The dividend will be paid out on or about July 20, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 32nd consecutive quarterly dividend. This dividend results in a 3.14% annual yield based on a closing share price of $15.91 on June 27, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community."

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. It has been ranked the #1 performing thrift in the nation for the third consecutive year by SNL Financial. Since 1985 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 BANK WELCOMES MARK SMITH AS SENIOR VICE PRESIDENT/ BUSINESS BANKING

Palos Verdes Estates, CA - June 21, 2012 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced that Mark Smith, formerly of Beach Business Bank and Bay Cities National Bank, has accepted the position of Senior Vice President/Business Banking.

Mr. Smith resides in Palos Verdes Estates, CA with his wife and two children. He has a long history of local community service, currently holding board member positions on the South Bay Police & Fire Memorial Foundation and the Torrance-South Bay Area YMCA.

"We are pleased to announce that Mark Smith has joined our organization," commented Randy C. Bowers, President and CEO. "Mark's 30+ years of experience as a commercial business banker in the South Bay will contribute to the further growth of our business banking relationships and geographic expansion. Mark's personal dedication to his clients and sense of community spirit reflect those values already so important to Malaga Bank. His association with the largest community bank headquartered in the South Bay will allow him increased opportunities to offer the exceptional customer service and financial products that we are known for."

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 BANK CFO JASNA PENICH A FINALIST IN 2012 WOMEN MAKING A DIFFERENCE EXECUTIVE MANAGEMENT AWARD

Palos Verdes Estates, CA - June 4, 2012 - Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today announced that EVP/CFO Jasna Penich was a finalist for the 2012 Women Making a Difference Executive Management Award sponsored by the Los Angeles Business Journal. Ms. Penich was one of over 200 nominees who were honored at a recent luncheon and awards ceremony.

"It is with great pride that we acknowledge the Los Angeles business community's recognition of Jasna's professional accomplishments," commented Randy C. Bowers, President and CEO. "She has contributed to the financial and operational success of Malaga Bank with efficient cost controls, prudent banking practices and strategic management decisions since joining us in 2008. Her enthusiasm and commitment to the Bank's culture of exceptional customer service and community volunteerism are felt within the organization and throughout the South Bay communities that we serve."

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 THIRD CONSECUTIVE YEAR!

Palos Verdes Estates, CA – May 22, 2012 – 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 December 31, 2011 for the third 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 — return on average assets (ROAA); return on average tangible common equity (ROATCE); median three-year growth rate in tangible book value per share; efficiency ratio; non-performing loans and net charge-offs to average loans — Malaga received a score of 144.60 which surpassed the #2 ranking thrift — coming in at 134.61— by 10 points!

“We are delighted to be recognized by SNL Financial as the top performing thrift in the nation for the third year in a row. We are thankful to our loyal customers, our shareholders and Board of Directors, and to our employees for their respective contributions to our success,” commented Randy C. 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 REPORTS 13% INCREASE IN FIRST QUARTER EARNINGS PRE-TAX ROE 25.35%

Palos Verdes Estates, CA – April 13, 2012 – Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2012 was $3,054,000 ($0.52 per share basic and fully diluted), an increase of $342,000 or 13% from net income of $2,712,000 ($0.46 per share basic and fully diluted) for the quarter ended March 31, 2011. Net income increased primarily due to an increase in net interest income. Net income in the first quarter was the highest quarterly net income in the Company’s 27-year history and resulted in a pre-tax return on average equity of 25.35%.

The Company did not have any delinquent loans or real estate owned at March 31, 2012. The Company’s allowance for loan losses was $2,920,000, or 0.37% of total loans, at March 31, 2012.

Net interest income totaled $7,655,000 in the first quarter of 2012, up $488,000 or 7% from the first quarter of 2011. This increase resulted from a $9.1 million or 15% increase in net interest-earning assets over interest-bearing liabilities and increase in the interest spread from 3.38% to 3.61%. The increase in the interest spread was due to a 0.28% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined 0.51%.

Operating expenses decreased 3% in the first quarter of 2012, to $2,563,000 from $2,651,000 in the first quarter of 2011. Decreased costs resulted primarily from a $65,000 decrease in deposit insurance premiums.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report record quarterly earnings in spite of continued weakness in the economy. Our loan portfolio is performing exceptionally well and we continue to maintain tight control over expenses."

Malaga’s total assets increased slightly to $833 million at March 31, 2012 compared to $817 million at March 31, 2011. The loan portfolio at March 31, 2012 was $799 million, an increase of $23 million or 3% from March 31, 2011. 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 $494 million as of March 31, 2012, a $16 million or 3% increase from $478 million at March 31, 2011. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $12 million or 7% from $178 million at March 31, 2011 to $166 million at March 31, 2012. The weighted average cost of funds for the first three months of 2012 was 1.35% versus 1.86% for the first three months of 2011. The decrease was due primarily to lower weighted average interest rates paid on retail deposits (which decreased 0.16%) and on Federal Home Loan Bank borrowings (which decreased 1.43%).

As of March 31, 2012, 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 12.58% and 20.69%, respectively, at March 31, 2012 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 30th consecutive quarter.

Mr. Bowers concluded, “We are off to a strong start in 2012 and look forward to continuing to support our community, reward our shareholders and to provide a safe and friendly place to bank locally.”

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. For over 27 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 31st CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.- March 30, 2012 - 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 Apr. 13, 2012. The dividend will be paid out on or about Apr. 17, 2012. Randy C. Bowers, President and CEO, remarked, “We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 31st consecutive quarterly dividend. This dividend results in a 3.45% annual yield based on a closing share price of $14.50 on March 29, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community.”

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 27 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 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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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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