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Press Release

2019 Press Releases

MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS IN 2018

Palos Verdes Estates, CA – January 25, 2019 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2018 was $15,305,000 ($2.22 basic and $2.20 fully diluted earnings per share) compared to $13,500,000 ($1.98 basic and $1.96 fully diluted earnings per share, as adjusted for the stock dividend declared on November 19, 2018) for the twelve months ended December 31, 2017, a 13% increase. Net income for the quarter ended December 31, 2018 was $3,845,000 ($0.56 basic and $0.55 fully diluted earnings per share), a decrease of $228,000 or 6% from income of $4,073,000 for the quarter ended December 31, 2017 ($0.59 basic and fully diluted earnings per share as adjusted for the stock dividend declared on November 19, 2018). Net income for the fourth quarter and year ended December 31, 2017 included an $823,000 decrease in income tax expense provision related to the remeasurement of deferred tax liabilities as a result of the Tax Cut and Jobs Act enacted on December 22, 2017. For the twelve months ended December 31, 2018, the Company’s annualized return on average equity was 11.65% and the annualized return on average assets was 1.44%, as compared to 11.12% and 1.33%, respectively, for the same period in 2017.

The Company did not have any delinquent loans or real estate owned at December 31, 2018. The Company’s allowance for loan losses was $3,158,000, or 0.32% of total loans, at December 31, 2018.

For 2018, net interest income totaled $32,577,000, an increase of $321,000 or 1% from 2017. This increase reflected higher average interest-earning assets of $34.9 million offset by a decrease of 0.11% in the interest rate spread to 3.07%.  The decrease in the interest rate spread is primarily attributable to an increase in the average cost of funds of 0.29% offset by an increase in the yield on average interest-earning assets of 0.18%.

Operating expenses increased of $370,000 or 3% to $11,954,000 in 2018 from $11,584,000 in 2017. The increase is primarily in compensation related costs.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report that the 4th quarter contributed to our achievement of record annual earnings at Malaga Financial Corporation in 2018. Along with strong capital, well controlled expenses and excellent asset quality this has enabled us to continue to reward our shareholders with quarterly cash dividends in addition to a special 5% stock dividend issued on December 28, 2018.”

Malaga Bank’s total assets increased to $1.088 billion at December 31, 2018 compared to $1.041 billion at December 31, 2017. The loan portfolio at December 31, 2018 was $994 million, an increase of $37 million or 4% from December 31, 2017. Malaga originates loans principally for its own portfolio and not for sale. 

Malaga Bank funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $661 million as of December 31, 2018, a $2 million increase from $659 million at December 31, 2017. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of December 31, 2018 and December 31, 2017. FHLB borrowings were $175 million as of December 31, 2018, a $36 million increase from $139 million at December 31, 2017. The increase in FHLB borrowings was used to fund the increase in loans.

As of December 31, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under those regulations. Core capital and risk-based capital ratios were 13.64% and 25.22%, respectively, at December 31, 2018 significantly exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 25 cents per share payable in January 2019, and a special stock dividend of 5% per share payable on December 28, 2018, to shareholders of record on December 14, 2018.

Mr. Bowers concluded, “We appreciate the support and loyalty of our employees, shareholders and Board of Directors and look forward to continuing to serve as the local community bank of choice in the South Bay region.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 44th  consecutive quarter as of September 2018.   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

MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2018 STOCK DIVIDEND IN ADDITION TO FIRST QUARTER 2019 CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—November 19, 2018— Malaga Financial Corporation (OTCPink:MLGF). Malaga Financial Corporation announced today that its Board of Directors had declared a special 5% stock dividend on the company’s common stock outstanding, payable on or about December 28, 2018 to shareholders of record at the close of business on December 14, 2018. The dividend will be issued in the form of additional shares of common stock. Cash will be issued in lieu of fractional shares. Additionally, a quarterly cash dividend of 25 cents was declared payable to shareholders of record at the close of business on December 14, 2018 to be paid on or about January 2, 2019. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 58th consecutive quarterly dividend. This will result in total cash dividends paid in 2018 of $1.00 per share for a 3.54% annual yield based on a closing share price of $28.25 on November 16, 2018 in addition to the special stock dividend. This is the 7th consecutive year that we have declared a special year-end dividend along with the quarterly cash dividend.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd consecutive quarter in June 2018. 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

MALAGA FINANCIAL CORPORATION REPORTS 22% INCREASE IN FIRST NINE MONTHS 2018 EARNINGS

Palos Verdes Estates, CA – October 12, 2018 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2018 was $3,866,000 ($0.58 basic and fully diluted earnings per share), an increase of $609,000 or 19% from income of $3,257,000 for the quarter ended September 30, 2017. Net income for the nine months ended September 30, 2018 was $11,460,000 ($1.74 basic and $1.73 fully diluted earnings per share) compared to $9,427,000 ($1.45 basic and $1.44 fully diluted earnings per share, as adjusted for the stock dividend declared on November 16, 2017) for the nine months ended September 30, 2017, a 22% increase. For the first nine months 2018, the Company’s annualized return on average equity was 11.74% and the annualized return on average assets was 1.45%, as compared to 10.43% and 1.25%, respectively, for the same period in 2017.

The Company did not have any delinquent loans or real estate owned at September 30, 2018. The Company’s allowance for loan losses was $3,103,000, or 0.32% of total loans, at September 30, 2018.

Net interest income totaled $8,103,000 in the third quarter of 2018, a decrease of $81,000 or 1% from the third quarter of 2017. This resulted mainly from a decrease in interest rate spread from 3.19% to 3.07% offset by increase of $21,565,000 in interest earning assets. This decrease in the interest spread is primarily attributed to an increase of 0.18% in yield on average interest-earning assets offset by an increase of 0.30% in yield on average interest-bearing liabilities.

Operating expenses increased 5% in the third quarter of 2018, to $2,938,000 from $2,791,000 in the third quarter of 2017. Increased costs were primarily related to compensation expense.

Randy C. Bowers, President and CEO, remarked, “Results for the 3rd quarter and also year to date 2018 continue to reflect significant improvement from the prior year. We are pleased to report asset quality and capital levels are strong and expenses well controlled. We look forward to continuing to serve as the local bank of choice in the South Bay region and thank our staff for the outstanding service they provide to our clients”

Malaga Bank’s total assets increased to $1.069 billion at September 30, 2018 compared to $1.034 billion at September 30, 2017. The loan portfolio at September 30, 2018 was $980 million, an increase of $26 million or 3% from September 30, 2017. Malaga originates loans principally for its own portfolio and not for sale. 

Malaga Bank funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $655 million as of September 30, 2018, a $15 million decrease from $670 million at September 30, 2017. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $98 million as of September 30, 2018 and September 30, 2017. FHLB borrowings were $163 million as of September 30, 2018, a $43 million increase from $120 million at September 30, 2017. The weighted average cost of funds for the third quarter of 2018 was 0.93% versus 0.63% for the third quarter of 2017.

As of September 30, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under those regulations. Core capital and risk-based capital ratios were 13.70% and 24.73%, respectively, at September 30, 2018 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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd  consecutive quarter as of June 2018.   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

MALAGA FINANCIAL CORPORATION ANNOUNCES 57th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—September 14, 2018— Malaga Financial Corporation (OTCPink:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on September 24, 2018. The dividend will be paid out on or about October 1, 2018. Randy C. Bowers, President and CEO, remarked, “Our continued strong operating results enable us to declare another quarterly dividend which represents a 3.34% annualized yield based on our most recent closing price of $29.90.  We are pleased to once again reward our shareholders for their support.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd consecutive quarter as of June 2018. 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

MALAGA FINANCIAL CORPORATION REPORTS 23% INCREASE IN FIRST HALF 2018 EARNINGS

Palos Verdes Estates, CA – July 19, 2018 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2018 was $3,745,000 ($0.57 basic and fully diluted earnings per share), an increase of $627,000 or 20% from income of $3,118,000 for the quarter ended June 30, 2017. Net income for the six months ended June 30, 2018 was $7,594,000 ($1.16 basic and $1.15 fully diluted earnings per share) compared to $6,170,000 ($0.95 basic and $0.94 fully diluted earnings per share, as adjusted for the stock dividend declared on November 16, 2017) for the six months ended June 30, 2017, a 23% increase. For the first six months 2018, the Company’s annualized return on average equity was 11.78% and the annualized return on average assets was 1.45%, as compared to 10.32% and 1.24%, respectively, for the same period in 2017.

The Company did not have any delinquent loans or real estate owned at June 30, 2018. The Company’s allowance for loan losses was $3,164,000, or 0.33% of total loans, at June 30, 2018.

Net interest income totaled $8,099,000 in the second quarter of 2018, an increase of $93,000 or 1% from the second quarter of 2017. This resulted from an increase in average interest-earning assets of $38 million offset by a decrease in interest rate spread from 3.18% to 3.06%. This decrease in the interest spread is primarily attributed to an increase of 0.17% in yield on average interest-earning assets offset by an increase of 0.29% in yield on average interest-bearing liabilities.

Operating expenses increased 5% in the second quarter of 2018, to $2,950,000 from $2,820,000 in the second quarter of 2017. Increased costs were primarily related to compensation expense.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report a significant increase in 2nd Quarter earnings year over year.  Capital levels are strong, asset quality remains excellent and our efficiency ratio continues to be one of the best in the industry.  In addition, we are delighted to have completed the purchase of the historic building that has housed our corporate headquarters since 1985.  This is a clear indication we are here to stay and continue to be the local bank of choice.”

Malaga Bank’s total assets increased to $1.063 billion at June 30, 2018 compared to $1.020 billion at June 30, 2017. The loan portfolio at June 30, 2018 was $973 million, an increase of $32 million or 3% from June 30, 2017. Malaga originates loans principally for its own portfolio and not for sale. 

Malaga Bank funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $649 million as of June 30, 2018, a $17 million decrease from $666 million at June 30, 2017. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $95 million as of June 30, 2018, a $2 million decrease from $97 million at June 30, 2017. FHLB borrowings were $167 million as of June 30, 2018, a $50 million increase from $117 million at June 30, 2017. The weighted average cost of funds for the second quarter of 2018 was 0.86% versus 0.57% for the second quarter of 2017.

As of June 30, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under those regulations. Core capital and risk-based capital ratios were 13.52% and 24.74%, respectively, at June 30, 2018 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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 42nd consecutive quarter as of March 2018.   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

MALAGA FINANCIAL CORPORATION ANNOUNCES 56th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—May 25, 2018— Malaga Financial Corporation (OTCPink:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on June 15, 2018. The dividend will be paid out on or about July 2, 2018. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 3.32% annualized yield based on our most recent closing price of $30.10. Increased earnings and our strong capital position allow us to continue to reward our shareholders for their investment.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 41st consecutive quarter as of December 2017. 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

MALAGA FINANCIAL CORPORATION REPORTS 26% INCREASE IN FIRST QUARTER EARNINGS

Palos Verdes Estates, CA – April 17, 2018 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2018 was $3,849,000 ($0.59 basic and $0.58 fully diluted earnings per share), an increase of $797,000 or 26% from net income of $3,052,000 ($0.49 basic and fully diluted earnings per share) for the quarter ended March 31, 2017. Pre-tax net income increased by 6% to $5,267,000 for the first quarter ended March 31, 2018 compared to $4,985,000 for the first quarter 2017. For the first quarter 2018, the Company’s annualized return on average equity was 12.03% and the annualized return on average assets was 1.48%, as compared to 10.27% and 1.24%, respectively, for the same period in 2017.

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2018.  The Company’s allowance for loan losses was $3,146,000, or 0.33% of total loans, at March 31, 2018.

Net interest income totaled $8,132,000 in the first quarter of 2018, an increase of $341,000 or 4% from the first quarter of 2017. This resulted from an increase in the average interest-earning assets of $49 million offset by a decrease in the interest rate spread from 3.15% to 3.11%.  The decrease in the interest rate spread is primarily attributable to an increase of 0.13% in yield on average interest-earning assets offset by an increase of 0.17% in yield on average interest-bearing liabilities.

Operating expenses increased 2% in the first quarter of 2018 to $3,062,000 from $2,992,000 in the first quarter 2017. Increased costs were primarily related to compensation expenses.

Randy C. Bowers, President and CEO, commented, “We are pleased to report a significant increase in 1st Quarter earnings year over year. Capital levels are strong, quality remains excellent and our efficiency ratio continues to be one of the best in the industry. We are excited about the potential for the rest of 2018 and thankful for the contributions of our colleagues and support of our shareholders.”

Malaga’s total assets increased by 5% to $1.047 billion at March 31, 2018 compared to $993 million at March 31, 2017. The loan portfolio at March 31, 2018 was $968 million, an increase of $52 million or 6% from March 31, 2017. 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 $660 million as of March 31, 2018, an $18 million or 3% decrease from $678 million at March 31, 2017. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of March 31, 2018, a $20 million or 26% increase from $77 million at March 31, 2017. The increase in wholesale deposits was used to fund the decrease in retail deposits. FHLB borrowings increased $43 million or 43% from $99 million at March 31, 2017 to $142 million at March 31, 2018. The increase in FHLB borrowings was used to fund increase in loans.

As of March 31, 2018, 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 13.42% and 24.25%, respectively, at March 31, 2018, 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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 41st  consecutive quarter as of December 2017.  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

MALAGA FINANCIAL CORPORATION ANNOUNCES 55th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—March 9, 2018— Malaga Financial Corporation (OTCPink:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on March 21, 2018. The dividend will be paid out on or about April 2, 2018. Randy C. Bowers, President and CEO, remarked, “ We are pleased to announce the 25 cent quarterly dividend which represents a 3.33% annualized yield based on our most recent closing price of $30.00.   We are delighted to continue to reward our shareholders for their support and loyalty.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 40th consecutive quarter as of September 2017. 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

MALAGA FINANCIAL CORPORATION REPORTS 32% INCREASE IN NET INCOME FOR FOURTH QUARTER 2017

Palos Verdes Estates, CA – January 26, 2018 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2017 was $4,073,000 ($0.66 basic and $0.65 fully diluted earnings per share), an increase of $983,000 or 32% from net income of $3,090,000 ($0.50 basic and fully diluted earnings per share) for the quarter ended December 31, 2016. Net income for the twelve months ended December 31, 2017 was $13,500,000 ($2.18 basic and $2.16 fully diluted earnings per share) as compared to $11,559,000 ($1.89 basic and $1.88 fully diluted earnings per share) for the twelve months ended December 31, 2016, a 17% increase. As a result of the Tax Cut and Jobs Act enacted on December 22, 2017, the Company was required to remeasure its deferred tax assets and liabilities. Net income for the fourth quarter and year ended December 31, 2017 included an $823,000 or $0.13 per diluted share decrease in income tax expense provision related to the remeasurement of deferred tax liabilities. Earnings for the twelve months ended December 31, 2017 resulted in a pre-tax return on average equity of 17.58%.

The Company had one 30 day delinquent loan (with a balance that represented 0.02% of total loans) and no foreclosed real estate owned at December 31, 2017. The Company’s allowance for loan losses was $3,111,000, or 0.33% of total loans, at December 31, 2017.

For 2017, net interest income totaled $32,256,000, an increase of $1,685,000 or 6% from 2016. This increase reflected higher average interest-earning assets of $12.4 million, and an increase of 0.14% in the interest rate spread to 3.18%. The increase in the interest rate spread is primarily attributable to an increase in yield on average interest-earning assets of 0.05%, and decrease in the average cost of funds of 0.09%. The increase in yield on average interest-earning assets is primarily due to increase in average loan outstanding offset by decrease in average loan yield of 0.09%. The decrease in rates paid on the average interest-bearing liabilities was due primarily to a shift to lower cost FHLB overnight borrowings and maturity/repayment of senior subordinated notes of $10,000,000 on December 30, 2016.

Operating expenses remained stable with an increase of $147,000 or 1% to $11,584,000 in 2017 from $11,437,000 in 2016. The increase is primarily in compensation related costs.

Randy C. Bowers, President and CEO, commented, “We are pleased to report record earnings for the 4th quarter and full year 2017. Earnings benefitted from the Tax Cut and Job Act enacted on December 22, 2017. We anticipate the lower tax rate will continue to have a positive impact on earnings in 2018 and future years.”

Malaga’s total assets increased $60 million or 6% to $1.041 billion at December 31, 2017. The loan portfolio at December 31, 2017 was $957 million, an increase of $53 million or 6% from December 31, 2016. 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 $659 million as of December 31, 2017, a $17 million or 3% decrease from $676 million at December 31, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of December 31, 2017, a $19 million or 24% increase from $78 million at December 31, 2016. FHLB borrowings increased $49 million or 54% from $90 million at December 31, 2016 to $139 million at December 31, 2017. The increase in wholesale deposits was used to fund the decrease in retail deposits and the increase in FHLB borrowings was used to fund the increase in loans.

As of December 31, 2017, 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 13.23% and 24.18%, respectively, at December 31, 2017, significantly exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 25 cents per share payable in January 2018, and a special stock dividend of 5% per share payable on December 29, 2017, to shareholders of record on December 15, 2017.

Mr. Bowers concluded, “Excellent asset quality combined with well controlled expenses and strong capital levels enabled us to continue to reward shareholders with quarterly cash dividends in addition to a special 5% stock dividend at year end 2017. We are grateful for the support and loyalty of our employees, shareholders and Board of Directors and look forward to 2018 with optimism.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 40th consecutive quarter as of September 2017. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2017 STOCK DIVIDEND IN ADDITION TO FIRST QUARTER 2018 CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—November 16, 2017— Malaga Financial Corporation (OTCPink:MLGF). Malaga Financial Corporation announced today that its Board of Directors had declared a special 5 % stock dividend on the company’s common stock outstanding, payable on or about December 29, 2017 to shareholders of record at the close of business on December 15, 2017. The dividend will be issued in the form of additional shares of common stock. Cash will be issued in lieu of fractional shares. Additionally, a quarterly cash dividend of 25 cents was declared payable to shareholders of record at the close of business on December 15, 2017 to be paid on or about January 3, 2018. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 54th consecutive quarterly dividend. This will result in total cash dividends paid in 2017 of $1.00 per share for a 3.41% annual yield based on a closing share price of $29.30 on November 14, 2017 in addition to the special stock dividend. This is the 6th consecutive year that we have declared a special year-end dividend along with the quarterly cash dividend.”

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 ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 38th consecutive quarter in June 2017. 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

MALAGA FINANCIAL CORPORATION REPORTS RECORD QUARTERLY EARNINGS – UP 16%

Palos Verdes Estates, CA – October 12, 2017 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2017 was $3,257,000 ($0.52 basic and fully diluted earnings per share), an increase of $445,000 from income of $2,812,000 for the quarter ended September 30, 2016. Net income for the nine months ended September 30, 2017 was $9,427,000 ($1.52 basic and $1.51 fully diluted earnings per share) as compared to $8,469,000 ($1.39 basic and $1.38 fully diluted earnings per share) for the nine months ended September 30, 2016. Net income for the first nine months of 2017 resulted in an annualized pre-tax return on average equity of 17.59%.

The Company did not have any delinquent loans or real estate owned at September 30, 2017. The Company’s allowance for loan losses was $3,085,000, or 0.32% of total loans, at September 30, 2017.

Net interest income totaled $8,184,000 in the third quarter of 2017, an increase of $660,000 from the third quarter of 2016. This increase resulted mainly from an increase in average interest earning assets of $12.7 million and an increase in the interest spread from 2.97% to 3.19%. The increase in the interest spread was due to a 0.16% increase in the weighted average yield on interest earning assets and a decrease of 0.06% in the weighted average rate on interest-bearing liabilities.

Operating expenses decreased 2% in the third quarter of 2017, to $2,791,000 from $2,842,000 in the third quarter of 2016. The decrease is primarily related to deposit insurance premiums and professional services.

Randy C. Bowers, President and CEO, remarked, “We are delighted to once again report record quarterly earnings – up 16% from the prior year and a new all-time high. Continued growth in our loan portfolio along with well controlled operating expenses contributed to the results”.

Malaga’s total assets increased to $1.03 billion at September 30, 2017 compared to $999 million at September 30, 2016. The loan portfolio at September 30, 2017 was $953 million. 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 $671 million as of September 30, 2017, a $1 million increase from $670 million at September 30, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $98 million as of September 30, 2017, an $8 million increase or 9% from $90 million at September 30, 2016. FHLB borrowings were $120 million as of September 30, 2017, a $26 million increase from $94 million at September 30, 2016. The weighted average cost of funds for the third quarter of 2017 was 0.63% versus 0.69% for the third quarter of 2016.

As of September 30, 2017, 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 13.12% and 23.81%, respectively, at September 30, 2017 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 52nd consecutive quarter.

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. For the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES 53rd CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—September 15, 2017— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on September 25, 2017.  The dividend will be paid out on or about October 2, 2017.  Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 3.57% annualized yield based on our most recent closing price of $28.05. This will be the 4th dividend paid in 2017 for a total of $ 1.00 per share. Excellent asset quality and well-controlled expenses continue to produce strong earnings and we are delighted to reward our shareholders with our 53rd consecutive quarterly cash dividend.”

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. For the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION REPORTS RECORD QUARTERLY EARNINGS-UP OVER 11%

Palos Verdes Estates, CA – July 11, 2017 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2017 was $3,118,000 ($0.51 basic and $0.50 fully diluted earnings per share), an increase of $320,000 or 11.4% from income of $2,798,000 for the quarter ended June 30, 2016. Net income for the six months ended June 30, 2017 was $6,170,000 ($1.00 basic and $0.99 fully diluted earnings per share) compared to $5,657,000 ($0.93 basic and $0.92 fully diluted earnings per share) for the six months ended June 30, 2016. Net income for the first six months of 2017 resulted in an annualized pre-tax return on average equity of 17.32%.

The Company did not have any delinquent loans or real estate owned at June 30, 2017. The Company’s allowance for loan losses was $3,057,000, or 0.33% of total loans, at June 30, 2017.

Net interest income totaled $8,006,000 in the second quarter of 2017, an increase of $464,000 or 6% from the second quarter of 2016. This increase resulted mainly from an increase in the interest spread from 2.99% to 3.18%. The increase in the interest spread was due to a 0.06% increase in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined 0.13%.

Operating expenses decreased 4% in the second quarter of 2017, to $2,820,000 from $2,926,000 in the second quarter of 2016. The decrease is primarily related to deposit insurance premiums and professional services.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report record quarterly earnings – up over 11% from the prior year. Growth in our balance sheet to over $1 billion along with a decrease in operating expenses contributed to increased profitability. Asset quality remains excellent with no delinquent or non-performing loans reported during the quarter”.

Malaga’s total assets increased to $1.0 billion at June 30, 2017 compared to $994 million at June 30, 2016. The investment portfolio at June 30, 2017 was $52 million, a decrease of $27 million or 34% from June 30, 2016 and is comprised of fed funds sold and certificates of deposit. The loan portfolio at June 30, 2017 was $941 million, an increase of $53 million or 6% from June 30, 2016.  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 $666 million as of June 30, 2017, a $2 million increase from $664 million at June 30, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of June 30, 2017, a $9 million increase or 10% from $89 million at June 30, 2016. FHLB borrowings were $117 million as of June 30, 2017, a $19 million increase from $98 million at June 30, 2016. The weighted average cost of funds for the second quarter of 2017 was 0.57% versus 0.70% for the second quarter of 2016.

As of June 30, 2017, 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 13.12% and 23.79%, respectively, at June 30, 2017 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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES 52nd CONSECUTIVE QUARTERLY CASH DIVIDEND

Palos Verdes Estates, CA—May 26, 2017— Malaga Financial Corporation (OTCPink:MLGF) Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on June 22, 2017. The dividend will be paid out on or about July 2, 2017.  Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 3.78% annualized yield based on our most recent closing price of $26.48. Excellent asset quality and well-controlled expenses continue to produce strong earnings and we are delighted to reward our shareholders with our 52nd consecutive quarterly cash dividend.”

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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 ww.malagabank.com

Contact:

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

MALAGA FINANCIAL CORPORATION REPORTS INCREASED FIRST QUARTER EARNINGS

Palos Verdes Estates, CA – April 11, 2017 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2017 was $3,052,000 ($0.49 basic and fully diluted earnings per share), an increase of $193,000 or 7% from net income of $2,859,000 ($0.47 basic and fully diluted earnings per share) for the quarter ended March 31, 2016. Earnings for the three months ended March 31, 2017 resulted in a pre-tax return on average equity of 16.77%.

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2017. The Company’s allowance for loan losses was $3,033,000, or 0.33% of total loans, at March 31, 2017.

Net interest income totaled $7,791,000 in the first quarter of 2017, an increase of $151,000 or 2% from the first quarter of 2016. This resulted from an increase in the interest rate spread from 3.04% to 3.15% offset by a decrease in average interest-earning assets of $12 million. The increase in the interest rate spread is primarily attributable to a decrease of 0.16% in average cost of funds offset by a decrease of 0.05% in yield on average interest-earning assets.

Operating expenses increased 4% in the first quarter of 2017 to $2,992,000 from $2,878,000 in the first quarter 2016. Increased costs were primarily related to compensation expenses.

Randy C. Bowers, President and CEO, commented, “We are pleased to report increases in 1st Quarter earnings and core capital levels as of March 31, 2017. Asset quality remains excellent and expenses are well controlled. We are optimistic about the opportunities the remainder of 2017 will present and appreciate the efforts of our colleagues and support of our shareholders.”

Malaga’s total assets decreased by 2% to $993 million at March 31, 2017 compared to $1.012 billion at March 31, 2016. The loan portfolio at March 31, 2017 was $916 million, an increase of $28 million or 3% from March 31, 2016. 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 $678 million as of March 31, 2017, a $4 million or 1% decrease from $682 million at March 31, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $77 million as of March 31, 2017, a $14 million or 16% decrease from $91 million at March 31, 2016.

As of March 31, 2017, 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 23.50%, respectively, at March 31, 2017, 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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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 ww.malagabank.com

Contact:

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

MALAGA FINANCIAL CORPORATION ANNOUNCES 51st CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—March 10, 2017— Malaga Financial Corporation (OTCPink:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on March 24, 2017.  The dividend will be paid out on or about April 3, 2017.  Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 3.88% annualized yield based on our most recent closing price of $25.75.   We are delighted to continue to reward our shareholders for their support and loyalty.”

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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 ww.malagabank.com

Contact:

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

MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS AND DIVIDENDS

Palos Verdes Estates, CA – January 19, 2017 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2016 was $3,090,000 ($0.50 basic and fully diluted earnings per share), an increase of $169,000 or 6% from net income of $2,921,000 ($0.48 basic and fully diluted earnings per share) for the quarter ended December 31, 2015. Net income for the twelve months ended December 31, 2016 was $11,559,000 ($1.89 basic and $1.88 fully diluted earnings per share) as compared to $11,406,000 ($1.88 basic and $1.87 fully diluted earnings per share) for the twelve months ended December 31, 2015, a 1% increase. Earnings for the twelve months ended December 31, 2016 resulted in a pre-tax return on average equity of 17.25%.

The Company had one 30 day delinquent loan in the amount of $186,500 and no foreclosed real estate owned at December 31, 2016.  The Company’s allowance for loan losses was $3,049,000, or 0.34% of total loans, at December 31, 2016.

For 2016, net interest income totaled $30,570,000, an increase of $235,000 or 1% from 2015. This increase reflected higher average interest-earning assets of $14.7 million, offset by decrease of 0.02% in the interest rate spread to 3.04%.  The decrease in the interest rate spread is primarily attributable to a decrease in yield on average interest-earning assets of 0.10%, primarily from a decrease in loan portfolio yield and an increase in lower yield investments such as federal funds sold.  Partially offsetting this was a decrease of 0.08% in the average cost of funds.  The decrease in the average cost of funds was due mainly to a 0.56% decrease in the cost on borrowings.

Operating expenses remained stable with an increase of $206,000 or 2% to $11,437,000 in 2016 from $11,231,000 in 2015. The increase is primarily in compensation related costs.

Randy C. Bowers, President and CEO, commented, “Our earnings remain strong and stable which allowed us to declare a special year-end dividend for the fifth consecutive year. Additionally, we increased the first quarter 2017 dividend by 11% to 25 cents per share. We appreciate the loyalty of our shareholders and are delighted to be able to enhance their return on investment with increased dividends and share value.”

Malaga’s total assets decreased $3.0 million or less than 1% to $981 million at December 31, 2016. The loan portfolio at December 31, 2016 was $904 million, an increase of $12 million or 1% from December 31, 2015.  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 $676 million as of December 31, 2016, an $11 million or 2% increase from $665 million at December 31, 2015. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $78 million as of December 31, 2016, a $14 million or 16% decrease from $92 million at December 31, 2015.  FHLB borrowings increased $2 million or 2% from $88 million at December 31, 2015 to $90 million at December 31, 2016.  The retail deposit growth was used to fund the increase in loans.

As of December 31, 2016, 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 12.85% and 23.85%, respectively, at December 31, 2016, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. 

In the fourth quarter, the Company declared a quarterly cash dividend of 25 cents per share, payable in January 2017 and a special dividend of 10 cents per share payable in December 2016. The quarterly dividend reflected an 11% 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. For the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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 ww.malagabank.com

Contact:

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

MALAGA BANK NAMED BUSINESS OF THE YEAR BY THE SOUTH BAY ASSOCIATION CHAMBERS OF COMMERCE

PALOS VERDES ESTATES, CALIF.—January 3, 2017— Malaga Financial Corporation(OTCPink:MLGF), the parent company of Malaga Bank, FSB, today reported that Malaga Bank was recognized as the Business of the Year by the South Bay Association Chambers of Commerce (SBACC).  The SBACC represents seventeen chambers of commerce in the South Bay providing the leading advocacy voice for the regional business community.

Malaga Bank is honored by this recognition of exceptional commitment to our local chambers and non-profit organizations. We’re proud that Malaga Bank has always been a strong proponent of our local community and helping one another since we first open our doors on March 14, 1985.  We believe in supporting our community and in patronizing local businesses.  Our philosophy is to provide a broad range of financial products and services to the entire South Bay community with the best in hospitality and service to go along with them.

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2016 CASH DIVIDEND AND 11% INCREASE IN FIRST QUARTER 2017 DIVIDEND

Palos Verdes Estates, CA—November 18, 2016 – Malaga Financial Corporation (OTCPink: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 19, 2016. The dividend will be paid on or about December 27, 2016. In addition, an increase in the quarterly dividend to 25 cents was declared payable to shareholders of record at the close of business on January 4, 2017 to be paid on or about January 11, 2017. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end dividend in addition to an increase in the amount of our 48th consecutive quarterly dividend. This will result in total dividends paid in 2016 of $1.00 per share for a 4.31% annual yield based on a closing share price of $23.20 on November 17, 2016. This is the 5th consecutive year that we have declared a special year-end dividend along with an increase in the quarterly dividend.”

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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 ww.malagabank.com

Contact:

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

MALAGA FINANCIAL CORPORATION ANNOUNCES THE RETIREMENT OF FOUNDING MEMBER OF BOARD OF DIRECTORS AND APPOINTMENT OF DR. ANDREW SHENG TO THE BOARD OF MFC AND ITS’ WHOLLY OWNED SUBSIDIARY MALAGA BANK, FSB

Palos Verdes Estates, CA – November 18, 2016 – (OTCPink:MLGF) - Randy Bowers, President and CEO, today announced that the Board of Directors of Malaga Financial Corporation has appointed Andrew Sheng, DMD to fill the vacancy created by the resignation of founding board member, Steven P.L. Sheng.

Dr. Andrew Sheng, a local resident raised on the Peninsula, is deeply involved in the local community. His children attend the Palos Verdes Peninsula School District and Andrew is on the Board of Managers of the Peninsula and San Pedro YMCA as well as a member of the San Pedro Rotary.  Dr. Sheng is owner and CEO of the thriving dentistry practice, Andrew Sheng Dental in San Pedro, and is excited to take on the responsibilities of a member of the board of directors of both MFC and Malaga Bank.

Jerry Donahue, Chairman of the Board, remarked, “We wish to express our gratitude for the long-time service of Mr. Steven P.L. Sheng on the boards of both MFC and Malaga Bank since the founding of the bank in 1985. Mr. Sheng’s leadership has served the boards well, including his role as Chairman of the Board in 2012.  With his retirement, Mr. Sheng is looking forward to spending more time with his family as well as enjoying other pursuits.  Mr. Sheng will continue to be a part of the Malaga family and the bank he helped found.”

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION REPORTS STRONG THIRD QUARTER EARNINGS

Palos Verdes Estates, CA – October 11, 2016 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2016 was $2,812,000 ($0.46 basic and fully diluted earnings per share), a decrease of $17,000 from income of $2,829,000 for the quarter ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $8,469,000 ($1.39 basic and $1.38 fully diluted earnings per share) as compared to $8,485,000 ($1.40 basic and $1.39 fully diluted earnings per share) for the nine months ended September 30, 2015.  Net income for the first nine months of 2016 resulted in an annualized pre-tax return on average equity of 17.09%.

The Company did not have any delinquent loans or real estate owned at September 30, 2016.  The Company’s allowance for loan losses was $2,974,000, or 0.34% of total loans, at September 30, 2016.

Net interest income totaled $7,524,000 in the third quarter of 2016, an increase of $11,000 from the third quarter of 2015.  This increase resulted mainly from an increase in average interest earning assets of $11.5 million partially offset by a decrease in the interest spread from 2.99% to 2.97%. The decrease in the interest spread was due to a 0.10% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.08%.

Operating expenses increased 2% in the third quarter of 2016, to $2,842,000 from $2,798,000 in the third quarter of 2015.  Increase is primarily related to compensation costs.

Randy C. Bowers, President and CEO, remarked, “2016 continues to present significant challenges to the banking industry. Anticipated increases to interest rates have not materialized and the economy struggles to achieve solid growth. Persistent low interest rates have raised concerns over inflated asset values. We are focused on executing our business plan with a strong emphasis on maintaining discipline in adhering to our underwriting standards. We are pleased to report earnings remain strong and stable and asset quality is excellent”.

Malaga’s total assets increased to $999 million at September 30, 2016 compared to $980 million at September 30, 2015.  The loan portfolio at September 30, 2016 was $886 million.  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 $670 million as of September 30, 2016, a $22 million or 3% increase from $648 million at September 30, 2015. The weighted average cost of funds for the third quarter of 2016 was 0.69% versus 0.77% for the third quarter of 2015.

As of September 30, 2016, 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 13.62% and 25.71%, respectively, at September 30, 2016 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.  In the third quarter, Malaga Financial paid a quarterly dividend for the 48th 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. For the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES 49th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—September 9, 2016— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 22.5 cents per share to shareholders of record on September 23, 2016.  The dividend will be paid out on or about October 3, 2016.  Randy C. Bowers, President and CEO, remarked, “We are pleased to announce a 22.5 cent quarterly dividend which represents a 3.89% annualized yield based on our most recent closing price of $23.15. Excellent asset quality and well-controlled expenses continue to produce strong earnings and we are delighted to reward our shareholders with our 49th consecutive quarterly cash dividend.”

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 the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA FINANCIAL CORPORATION REPORTS STRONG SECOND QUARTER EARNINGS

Palos Verdes Estates, CA – July 13, 2016 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2016 was $2,798,000 ($0.46 basic and $0.45 fully diluted earnings per share), a decrease of $109,000 from income of $2,907,000 for the quarter ended June 30, 2015. Net income for the six months ended June 30, 2016 was $5,657,000 ($0.93 basic and $0.92 fully diluted earnings per share) as compared to $5,656,000 ($0.93 basic and fully diluted earnings per share) for the six months ended June 30, 2015. Net income for the first six months of 2016 resulted in an annualized pre-tax return on average equity of 17.25%.

The Company did not have any delinquent loans or real estate owned at June 30, 2016. The Company’s allowance for loan losses was $2,972,000, or 0.34% of total loans, at June 30, 2016.

Net interest income totaled $7,542,000 in the second quarter of 2016, a decrease of $83,000 or 1% from the second quarter of 2015. This decrease resulted mainly from a decrease in the interest spread from 3.09% to 2.99%, partially offset by an increase in average interest earning assets of $6 million. The decrease in the interest spread was due to a 0.20% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.10%.

Operating expenses increased 7% in the second quarter of 2016, to $2,926,000 from $2,730,000 in the second quarter of 2015. Increase is primarily related to compensation and data processing costs.

Randy C. Bowers, President and CEO, remarked, “The 1st half of 2016 has presented a very difficult operating environment for the banking industry. Interest rates continue at historically low levels, regulatory requirements are increasing and competition is intense. In spite of these challenges we are pleased to report earnings remain strong and stable with excellent asset quality and increasing levels of capital. We are grateful to our colleagues for their contributions in achieving these results”.

Malaga’s total assets increased to $994 million at June 30, 2016 compared to $990 million at June 30, 2015. The loan portfolio at June 30, 2016 was $888 million. 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 $664 million as of June 30, 2016, a $16 million or 3% increase from $648 million at June 30, 2015. The weighted average cost of funds for the second quarter of 2016 was 0.70% versus 0.80% for the second quarter of 2015.

As of June 30, 2016, 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 13.57% and 25.45%, respectively, at June 30, 2016 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.  In the second quarter, Malaga Financial paid a quarterly dividend for the 47th 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. For the third consecutive year, Malaga Bank has been named in the top 25 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 page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. 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

MALAGA BANK NAMED IN THE TOP 25 HEALTHIEST BANKS IN AMERICA FOR THE THIRD CONSECUTIVE YEAR 

PALOS VERDES ESTATES, CALIF.—June 7, 2016— Malaga Financial Corporation (OTCPink: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 2016 edition of its Top 200 Healthiest Banks in America. For the third consecutive year, Malaga Bank was in the top 25 from the list of over 6,100 banks across the U.S. Each year DepositAccounts.com evaluates the financial health of every federally insured bank in the United States – more than 6,100 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 2016 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 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. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES 48th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.—May 27, 2016— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 22.5 cents per share to shareholders of record on June 24, 2016. The dividend will be paid out on or about July 1, 2016. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 22.5 cent quarterly dividend which represents a 3.93% annualized yield based on our most recent closing price of $ 22.88. Excellent asset quality and well-controlled expenses continue to produce strong earnings and we are delighted to reward our shareholders with our 48th consecutive quarterly cash dividend.”

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. 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

MALAGA FINANCIAL CORPORATION REPORTS INCREASED FIRST QUARTER EARNINGS

Palos Verdes Estates, CA – April 11, 2016 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2016 was $2,859,000 ($0.47 basic and fully diluted earnings per share), an increase of $110,000 or 4% from net income of $2,749,000 ($0.45 basic and fully diluted earnings per share) for the quarter ended March 31, 2015. Earnings for the three months ended March 31, 2016 resulted in a pre-tax return on average equity of 17.53%. 

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2016.  The Company’s allowance for loan losses was $2,970,000, or 0.33% of total loans, at March 31, 2016. 

Net interest income totaled $7,640,000 in the first quarter of 2016, an increase of $216,000 or 3% from the first quarter of 2015.  This increase resulted from higher average interest-earning assets of $46 million, offset by a decrease in the interest rate spread from 3.10% to 3.04%.  The decrease in the interest rate spread is primarily attributable to a decrease in yield on average interest-earning assets of 0.16%, partially offset by a decrease of 0.10% in the average cost of funds. 

Operating expenses increased 2% in the first quarter of 2016 to $2,878,000 from $2,819,000 in the first quarter 2015. Increased costs were primarily related to compensation and data processing expenses. 

Randy C. Bowers, President and CEO, commented, “The continued execution of our strategic business plan by our dedicated employees has resulted in another quarter of growth and increased earnings. While there remains considerable uncertainty as to future economic growth and monetary policy we are pleased to report that our earnings remain strong and stable.”

Malaga’s total assets increased by 4% to $1.012 billion at March 31, 2016 compared to $973 million at March 31, 2015.  The loan portfolio at March 31, 2016 was $887 million, an increase of $14 million or 2% from March 31, 2015.  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 $682 million as of March 31, 2016, a $53 million or 9% increase from $628 million at March 31, 2015. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $91 million as of March 31, 2016, a $20 million or 18% decrease from $111 million at March 31, 2015.  The retail deposit growth was used to fund the increase in loans and the decrease in wholesale deposits. 

As of March 31, 2016, 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 13.50% and 25.17%, respectively, at March 31, 2016, 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. 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

MALAGA FINANCIAL CORPORATION ANNOUNCES 47th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CA.- March 11, 2016- Malaga Financial Corporation (OTC Pink: MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 22.5 cents per share to shareholders of record on March 25, 2016. The dividend will be paid out on or about April 1, 2016. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 22.5 cent quarterly dividend which represents a 12.5% increase from the prior year’s quarterly dividend. This dividend represents a 4.04% annualized yield based on our most recent closing price of $ 22.30. In spite of the challenge of increased global economic uncertainty and heightened regulatory expectations, the continued execution of our business plan by our dedicated bankers has produced strong earnings and increased capital. We are delighted to continue to reward our shareholders for their support and loyalty.”

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. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 SNL Financials Top 100 Public Thrift for 2014. 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

MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS AND DIVIDENDS

PALOS VERDES ESTATES, CA.- January 22, 2016- Malaga Financial Corporation (OTC Pink: MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2015 was $2,921,000 ($0.48 basic and fully diluted earnings per share), an increase of $82,000 or 3% from net income of $2,839,000 ($0.48 basic and $0.47 fully diluted earnings per share) for the quarter ended December 31, 2014. Net income for the twelve months ended December 31, 2015 was $11,406,000 ($1.88 basic and $1.87 fully diluted earnings per share) as compared to $11,211,000 ($1.87 basic and $1.86 fully diluted earnings per share) for the twelve months ended December 31, 2014, a 2% increase. Earnings for the twelve months ended December 31, 2015 resulted in a pre-tax return on average equity of 18.20%.

The Company did not have any delinquent loans or foreclosed real estate owned at December 31, 2015. The Company’s allowance for loan losses was $2,993,000, or 0.34% of total loans, at December 31, 2015.

For 2015, net interest income totaled $30,336,000, an increase of $644,000 or 2% from 2014. This increase reflected higher average interest-earning assets of $68 million, offset by decrease of 0.16% in the interest rate spread to 3.06%. The decrease in the interest rate spread is primarily attributable to a decrease in yield on average interest-earning assets of 0.19%, primarily from a decrease in loan portfolio yield and an increase in lower yield investments such as federal funds sold. Partially offsetting this was a decrease of 0.03% in the average cost of funds. The decrease in the average cost of funds was due mainly to a 0.03% decrease in the cost on average deposits.

Operating expenses remained stable with an increase of $360,000 or 3% to $11,231,000 in 2015 from $10,871,000 in 2014. The increase is primarily in compensation related costs.

Randy C. Bowers, President and CEO, commented, “We are pleased that the continued positive trend in earnings for the fourth quarter and full year, allowed us to declare a special year-end dividend for the fourth consecutive year. In addition, we increased the first quarter 2016 dividend by 13% to 22.5 cents per share. We appreciate the loyalty of our shareholders and are delighted to be able to enhance their return on investment with increased dividends and share value.”

Malaga’s total assets increased $37.1 million or 4% to $984 million at December 31, 2015. The loan portfolio at December 31, 2015 was $892 million, an increase of $16 million or 2% from December 31, 2014. 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 $665 million as of December 31, 2015, a $67 million or 11% increase from $598 million at December 31, 2014. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $92 million as of December 31, 2015, an $18 million or 17% decrease from $110 million at December 31, 2014. FHLB borrowings decreased $17 million or 16% from $105 million at December 31, 2014 to $88 million at December 31, 2015. The retail deposit growth was used to fund the increase in loans and the decrease in wholesale deposits and FHLB borrowings.

As of December 31, 2015, 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 25.31%, respectively, at December 31, 2015, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 22.5 cents per share, payable in January 2016 and a special dividend of 10 cents per share payable in December 2015. The quarterly dividend reflected a 13% 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. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 of SNL Financials Top 100 Public Thrift for 2014. 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