Press Release
Malaga Financial Corporation Announces 75th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—March 13, 2023— 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 March 24, 2023. The dividend will be paid out on or about April 3, 2023. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased that continued strong operating results have positioned us to declare this 25 cent quarterly dividend which represents a 4.34% annualized yield based on our most recent closing price of $23.05. We are grateful for the efforts of our colleagues and delighted 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 61st consecutive quarter as of December 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings Fourth Quarter and Year-to-Date 2022
Palos Verdes Estates, CA – January 24, 2023 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2022 was $21,352,000 ($2.50 basic and fully diluted earnings per share) compared to $19,602,000 ($2.30 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022) for the twelve months ended December 31, 2021, a 9% increase. Net income for the quarter ended December 31, 2022 was $5,973,000 ($0.70 basic and fully diluted earnings per share), an increase of $1,010,000 or 20% from net income of $4,963,000 for the quarter ended December 31, 2021 ($0.58 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022). For the twelve months ended December 31, 2022, the Company’s annualized return on average equity was 12.15% and the annualized return on average assets was 1.43%, as compared to 12.04% and 1.41%, respectively, for the same period in 2021.
The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2022. The Company’s allowance for loan losses was $3,829,000, or 0.31% of total loans, at December 31, 2022.
For 2022, net interest income totaled $42,847,000, an increase of $3,295,000 or 8% from 2021. This increase reflected higher average interest-earning assets of $104.5 million and an increase of 0.01% in the interest rate spread to 2.85%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.06% offset by an increase in the average cost of funds of 0.05%.
Provision for loan losses decreased $83,000 to $27,000 in 2022 from $110,000 in 2021. The decrease is primarily due to continued positive trends in multi-family vacancy factors and unemployment, and continued excellent credit quality of the Company’s loan portfolio despite the negative effects presented by the unprecedented pandemic and possibility of a recession.
Other operating income increased 4% in 2022 to $905,000 from $868,000 in 2021. Income increased primarily due to deposit related fees.
Operating expenses increased $903,000 or 7% to $13,381,000 in 2022 from $12,478,000 in 2021. The increase is primarily attributed to increases in compensation of $408,000, general and administrative expenses of $207,000, office rent and utilities $121,000, professional services $93,000, and data processing $69,000.
Randy C. Bowers, Chairman, President and CEO, remarked, “2022 presented a volatile operating environment as interest rates increased dramatically during the year. We are pleased to report record earnings for the full year and the 4th quarter in addition to maintaining excellent credit quality and expense control. We are cautiously optimistic with regards to 2023 and are evaluating our strategic plan to be prepared for the various scenarios that we may encounter going forward.”
Malaga Bank’s total assets increased to $1.509 billion at December 31, 2022 compared to $1.474 billion at December 31, 2021. The loan portfolio at December 31, 2022 was $1.251 billion, an increase of $5.0 million from December 31, 2021. 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 $834.7 million as of December 31, 2022, a $6.8 million or 1% increase from $827.9 million at December 31, 2021. Wholesale deposits decreased $14.3 million or 8% from $189.3 million at December 31, 2021. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $108.6 million of brokered long-term certificates of deposit at December 31, 2022. FHLB borrowings were $290.0 million as of December 31, 2022, a $25.0 million increase from $265.0 million at December 31, 2021.
As of December 31, 2022, 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 12.94% and 23.82%, respectively, at December 31, 2022, 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 2023, and a special stock dividend of 5% per share payable on December 30, 2022, to shareholders of record as of December 16, 2022.
Mr. Bowers concluded, “Our results reflect the dedicated efforts of our team in very challenging circumstances. We appreciate their contributions and loyalty and the support of our shareholders and Board of Directors. We look forward to the coming year.”
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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 60th consecutive quarter as of September 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces Special Year End 2022 Stock Dividend in Addition to First Quarter 2023 Cash Dividend
PALOS VERDES ESTATES, CALIF.—November 14, 2022— 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 30, 2022 to shareholders of record at the close of business on December 16, 2022. 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 16, 2022 to be paid on or about January 4, 2023. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 74th consecutive quarterly dividend. This will result in total cash dividends paid in 2022 of $1.00 per share for a 4.29% annual yield based on a closing share price of $23.30 on November 10, 2022 in addition to the special stock dividend. This is the 11th 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 59th consecutive quarter as of June 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings
Palos Verdes Estates, CA – October 19, 2022 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2022 was $15,379,000 ($1.89 basic and fully diluted earnings per share) compared to $14,639,000 ($1.81 basic and $1.80 fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the same period ended September 30, 2021, an increase of $740,000 or 5%. Net income for the quarter ended September 30, 2022, was $5,605,000 ($0.69 basic and fully diluted earnings per share), an increase of $588,000 or 12% from net income of $5,017,000 ($0.62 basic and $0.61 fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the quarter ended September 30, 2021. For the first nine months of 2022, the Company’s annualized return on average equity was 11.77% and the annualized return on average assets was 1.38%.
Net interest income totaled $11,120,000 in the third quarter of 2022, an increase of $1,069,000 or 11% from the same period in 2021. This resulted primarily from an increase in excess interest-bearing assets over interest-bearing liabilities of $13.1 million and an increase in the interest rate spread from 2.84% to 2.96%. The increase in the interest rate spread is primarily attributable to an increase of 0.16% in yield on average interest-earning assets offset by an increase of 0.04% in yield on average interest-bearing liabilities.
Other operating income increased 3% in the third quarter of 2022 to $212,000 from $206,000 in the third quarter of 2021. Income increased primarily due to deposit related fees.
Operating expenses increased 8% in the third quarter of 2022 to $3,309,000 from $3,070,000 in the third quarter of 2021 primarily due to a 7% increase in compensation.
The Company had no delinquent loans or loans with deferred payments and no foreclosed real estate owned at September 30, 2022. The Company’s allowance for loan losses was $3,760,000, or 0.30% of total loans, at September 30, 2022.
Randy C. Bowers, Chairman, President and CEO, commented, “In a difficult operating environment we are pleased to report record earnings for both the quarter and first nine months of 2022. The year has presented challenges that were not anticipated at the start of 2022, however, our business plan has proven to be resilient with the result that earnings continue to improve, asset quality remains excellent, and expenses are well controlled. We expect further challenges going forward but remain cautiously optimistic about the remainder of this year and 2023.”
The Company’s total assets increased by 3% to $1.477 billion at September 30, 2022, compared to $1.429 billion at September 30, 2021. The loan portfolio at September 30, 2022, was $1.234 billion, a decrease of $11.7 million or 1% from September 30, 2021. The Company originates loans principally for its own portfolio and not for sale.
The Company funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $851.3 million as of September 30, 2022, a $45.2 million increase from $806.1 million at September 30, 2021. Wholesale deposits increased $11.1 million or 7% from $161.8 million at September 30, 2021, to $172.9 million at September 30, 2022. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $109.0 million of long-term brokered certificates of deposits. FHLB borrowings decreased $20.0 million or 7% from $270.0 million at September 30, 2021, to $250.0 million at September 30, 2022.
As of September 30, 2022, 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 12.57% and 23.27%, respectively, 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 59th consecutive quarter as of June 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 73rd Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—September 12, 2022— 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 23, 2022. The dividend will be paid out on or about October 3, 2022. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.26% annualized yield based on our most recent closing price of $23.47. Solid earnings and our strong capital level position 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 59th consecutive quarter as of June 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Reports Increased Earnings for the First Six Months of 2022
Palos Verdes Estates, CA – July 15, 2022 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2022 was $9,774,000 ($1.20 basic and fully diluted earnings per share) compared to $9,622,000 ($1.19 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the same period ended June 30, 2021, an increase of $152,000 or 2%. Net income for the quarter ended June 30, 2022 was $4,979,000 ($0.61 basic and fully diluted earnings per share), an increase of $73,000 or 1% from net income of $4,906,000 ($0.61 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the quarter ended June 30, 2021, and an increase of $184,000 or 4% from net income of $4,795,000 ($0.59 basic and fully diluted earnings per share) for the quarter ended March 31, 2022. For the first six months of 2022, the Company’s annualized return on average equity was 11.34% and the annualized return on average assets was 1.31%.
The increase in earnings of $73,000 for the second quarter of 2022 compared to second quarter of 2021 was primarily attributable to a $388,000 increase in net interest income after provision for loan losses, offset by a $285,000 increase in other operating expense, and a $31,000 increase in income tax expense.
Net interest income totaled $10,120,000 in the second quarter of 2022, an increase of $328,000 or 3% from the same period in 2021. This resulted primarily due to an increase in excess interest-bearing assets over interest-bearing liabilities of $12.6 million, offset by a decrease in the interest rate spread from 2.87% to 2.70%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.22% in yield on average interest-earning assets offset by a decrease of 0.05% in yield on average interest-bearing liabilities.
Operating expenses increased 9% in the second quarter of 2022 to $3,316,000 from $3,031,000 in the second quarter of 2021. The increase is primarily attributed to an increase in compensation of $189,000, office rent and utilities of $45,000, and general and administrative expenses of $37,000.
The Company had no 30-day delinquent loans or loans with deferred payments and no foreclosed real estate owned at June 30, 2022. The Company’s allowance for loan losses was $3,717,000, or 0.30% of total loans, at June 30, 2022.
Randy C. Bowers, Chairman, President and CEO, commented, “During this period of growing uncertainty about the economy we are pleased to report increased earnings for both the quarter and first half of 2022. As a result of the efforts of our colleagues, earnings continue to improve, asset quality remains excellent and expenses continue to be well controlled.”
Malaga Bank’s total assets increased by 9% to $1.519 billion at June 30, 2022 compared to $1.393 billion at June 30, 2021. The loan portfolio at June 30, 2022 was $1.223 billion, a decrease of $14.1 million or 1% from June 30, 2021. 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 $888.4 million as of June 30, 2022, a $107.8 million increase from $780.6 million at June 30, 2021. Wholesale deposits increased $25.1 million or 16% from $157.9 million at June 30, 2021 to $183.0 million at June 30, 2022. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $60.0 million and $109.1 million of brokered long-term certificates of deposits as of June 30, 2022. FHLB borrowings decreased $20.0 million or 7% from $270.0 million at June 30, 2021 to $250.0 million at June 30, 2022.
As of June 30, 2022, 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 22.71%, respectively, at June 30, 2022, 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 58th consecutive quarter as of March 2022. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 72nd Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—May 27, 2022— 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 17, 2022. The dividend will be paid out on or about July 1, 2022. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.26% annualized yield based on our most recent closing price of $23.50. Solid earnings and our strong capital level position 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 58th consecutive quarter as of March 2022. 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
Contact:
Randy Bowers
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Increase in First Quarter Earnings
Palos Verdes Estates, CA – April 12, 2022 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2022 was $4,795,000 ($0.59 basic and fully diluted earnings per share), an increase of $79,000 or 2% from net income of $4,716,000 ($0.58 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the quarter ended March 31, 2021. For the first quarter of 2022, the Company’s annualized return on average equity was 11.20% and the annualized return on average assets was 1.29%, as compared to 11.90% and 1.43%, respectively, for the same period in 2021.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2022. The Company’s allowance for loan losses was $3,737,000, or 0.30% of total loans, at March 31, 2022.
Net interest income totaled $9,875,000 in the first quarter of 2022, an increase of $271,000 or 3% from the first quarter of 2021. This increase was due primarily to an increase in excess interest-earning assets over interest-bearing liabilities of $13 million offset by a decrease of 0.27% in the interest rate spread to 2.63%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.36% in the yield on average interest-earning assets offset by a 0.09% decrease in the average cost of funds.
In the first quarter of 2022, operating expenses increased 8% to $3,369,000 from $3,132,000 in the first quarter of 2021. The increase is primarily attributed to increases in compensation of $102,000, general and administrative expenses of $56,000, and professional services of $46,000.
Randy C. Bowers, Chairman, President and CEO, commented, “In spite of several new challenges that we are facing in 2022 we are pleased to report a modest increase in first quarter earnings. Higher inflation, rapidly rising interest rates and economic uncertainty in addition to geopolitical unrest all contribute to a highly volatile operating environment. We also continue to deal with the effects of the pandemic. We are grateful for the efforts of our staff in achieving these results in very difficult times. We are hopeful that we will see improvement in these circumstances over the remainder of the year.”
Malaga’s total assets increased by 12% to $1.496 billion at March 31, 2022 compared to $1.332 billion at March 31, 2021. The loan portfolio at March 31, 2022 was $1.229 billion, an increase of $27 million or 2% from March 31, 2021. 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 $861 million as of March 31, 2022, a $115 million increase from $746 million at March 31, 2021. Wholesale deposits, comprised mainly of State of California certificates of deposit and brokered deposits, totaled $188 million as of March 31, 2022, a $61 million increase from $127 million at March 31, 2021. FHLB borrowings decreased $25 million or 9% from $275 million at March 31, 2021 to $250 million at March 31, 2022.
As of March 31, 2022, 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 12.20% and 22.11%, respectively, at March 31, 2022, 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 57th consecutive quarter as of December 2021. 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 atwww.malagabank.com.
Contact:
Randy Bowers
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 71st Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—March 11, 2022— 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 March 25, 2022. The dividend will be paid out on or about April 1, 2022. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased that continued strong operating results have positioned us to declare this 25 cent quarterly dividend which represents a 4.00% annualized yield based on our most recent closing price of $25.00. We are grateful for the efforts of our colleagues and delighted 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 57th consecutive quarter as of December 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings Year-To-Date 2021
Palos Verdes Estates, CA – January 27, 2022 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2021 was $19,602,000 ($2.42 basic and fully diluted earnings per share) compared to $18,335,000 ($2.27 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the twelve months ended December 31, 2020, a 7% increase. Net income for the quarter ended December 31, 2021 was $4,963,000 ($0.61 basic and fully diluted earnings per share), an increase of $220,000 or 5% from net income of $4,743,000 for the quarter ended December 31, 2020 ($0.59 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021). For the twelve months ended December 31, 2021, the Company’s annualized return on average equity was 12.04% and the annualized return on average assets was 1.41%, as compared to 12.15% and 1.43%, respectively, for the same period in 2020.
The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2021, or any loans modified as a result of the COVID-19 pandemic. The Company’s allowance for loan losses was $3,798,000, or 0.30% of total loans, at December 31, 2021.
For 2021, net interest income totaled $39,552,000, an increase of $1,913,000 or 5% from 2020. This increase reflected higher average interest-earning assets of $105.8 million offset by a decrease of 0.07% in the interest rate spread to 2.84%. The decrease in the interest rate spread is primarily attributable to a decrease in the yield on average interest-earning assets of 0.30% offset by a decrease in the average cost of funds of 0.23%.
Provision for loan losses decreased $52,000 to $110,000 in 2021 from $162,000 in 2020. The decrease is primarily due to continued positive trends in multi-family vacancy factors and unemployment and continued excellent credit quality of the Company’s loan portfolio despite the negative effects presented by the unprecedented pandemic over the past 21 months.
Other operating income increased 11% in 2021 to $868,000 from $785,000 in 2020. Income increased primarily due to deposit related fees.
Operating expenses increased $186,000 or 2% to $12,478,000 in 2021 from $12,292,000 in 2020. The increase is primarily attributed to increases in compensation of $136,000, data processing $49,000, deposit insurance premiums of $29,000, and general and administrative expenses of $24,000 offset by a decrease in professional services of $47,000.
Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to once again report record earnings for the full year in addition to excellent credit quality and expense control. These accomplishments are the result of the extraordinary work of our team in very challenging conditions. We appreciate their dedicated efforts and our ability to continue to provide additional compensation along with stringent safety measures during the ongoing pandemic.”
Malaga Bank’s total assets increased to $1.474 billion at December 31, 2021 compared to $1.312 billion at December 31, 2020. The loan portfolio at December 31, 2021 was $1.246 billion, an increase of $53.0 million or 4% from December 31, 2020. 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 $827.9 million as of December 31, 2021, a $90.6 million or 12% increase from $737.3 million at December 31, 2020. Wholesale deposits increased $72.7 million or 62% from $116.6 million at December 31, 2020. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $60.0 million and $109.2 million of brokered long-term certificates of deposit at December 31, 2021. FHLB borrowings were $265.0 million as of December 31, 2021, a $15.0 million decrease from $280.0 million at December 31, 2020.
As of December 31, 2021, 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 12.30% and 22.02%, respectively, at December 31, 2021, 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 2022, and a special stock dividend of 5% per share payable on December 30, 2021, to shareholders of record as of December 17, 2021.
Mr. Bowers concluded, “We appreciate the support and loyalty of our employees, shareholders and Board of Directors and look forward to the coming year.”
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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 56th consecutive quarter as of September 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Contact:
Randy Bowers
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces Special Year End 2021 Stock Dividend in Addition to First Quarter 2022 Cash Dividend
PALOS VERDES ESTATES, CALIF.—October 25, 2021— 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 30, 2021 to shareholders of record at the close of business on December 17, 2021. 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 17, 2021 to be paid on or about January 4, 2022. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 70th consecutive quarterly dividend. This will result in total cash dividends paid in 2021 of $1.00 per share for a 3.92% annual yield based on a closing share price of $25.50 on October 22, 2021 in addition to the special stock dividend. This is the 10th 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 55th consecutive quarter as of June 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports 8% Increase in Earnings for the First Nine Months of 2021
Palos Verdes Estates, CA – October 15, 2021 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2021 was $14,639,000 ($1.90 basic and fully diluted earnings per share) compared to $13,592,000 ($1.77 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the same period ended September 30, 2020, an increase of $1,047,000 or 8%. Net income for the quarter ended September 30, 2021 was $5,017,000 ($0.65 basic and fully diluted earnings per share), an increase of $229,000 or 5% from net income of $4,788,000 ($0.63 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the quarter ended September 30, 2020. Net income for the quarter ended September 30, 2021 was $5,017,000 ($0.65 basic and fully diluted earnings per share), an increase of $111,000 or 2% from net income of $4,906,000 ($0.64 basic and fully diluted earnings per share) for the quarter ended June 30, 2021. For the first nine months of 2021, the Company’s annualized return on average equity was 12.09% and the annualized return on average assets was 1.43%.
The increase in earnings of $111,000 for the third quarter of 2021 compared to second quarter of 2021 was attributable to a $255,000 increase in net interest income after provision for loan losses, offset by a $56,000 decrease in other operating income, a $39,000 increase in other operating expenses, and a $49,000 increase in income tax expense.
Net interest income totaled $10,051,000 in the third quarter of 2021, an increase of $382,000 or 4% from the same period in 2020. This resulted primarily due to an increase in excess interest-bearing assets over interest-bearing liabilities of $11.6 million, offset by a decrease in the interest rate spread from 2.94% to 2.84%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.25% in yield on average interest-earning assets offset by a decrease of 0.15% in yield on average interest-bearing liabilities.
Other operating income increased 15% in the third quarter of 2021 to $206,000 from $179,000 in the third quarter of 2020. Income increased primarily due to deposit related fees.
Operating expenses increased slightly in the third quarter of 2021 to $3,070,000 from $3,064,000 in the third quarter of 2020.
The Company had no delinquent loans or loans with deferred payments and no foreclosed real estate owned at September 30, 2021. The Company’s allowance for loan losses was $3,775,000, or 0.30% of total loans, at September 30, 2021.
Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report record earnings for both the quarter and first nine months of 2021. As a result of the continued execution of our business plan, earnings are improving, asset quality remains excellent and expenses are well controlled. Trends are positive and we are optimistic about the remainder of this year and 2022.”
The Company’s total assets increased by 11% to $1.429 billion at September 30, 2021 compared to $1.283 billion at September 30, 2020. The loan portfolio at September 30, 2021 was $1.246 billion, an increase of $58.9 million or 5% from September 30, 2020. The Company originates loans principally for its own portfolio and not for sale.
The Company funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $806.1 million as of September 30, 2021, a $107.0 million increase from $699.1 million at September 30, 2020. Wholesale deposits increased $51.2 million or 46% from $110.6 million at September 30, 2020 to $161.8 million at September 30, 2021. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $60.0 million and $88.0 million of long-term brokered certificates of deposits. FHLB borrowings decreased $25.0 million or 8% from $295.0 million at September 30, 2020 to $270.0 million at September 30, 2021.
As of September 30, 2021, 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 12.43% and 22.01%, respectively, 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 Bauer’s premier Top 5-Star rating for the 55th consecutive quarter as of June 2021. 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.
Malaga Financial Corporation Announces 69th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—September 10, 2021— 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 24, 2021. The dividend will be paid out on or about October 1, 2021. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.02% annualized yield based on our most recent closing price of $24.87. Solid earnings and our strong capital level position 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. Malaga Bank has been awarded an A+ financial health rating by DepositAccounts.com. 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. 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 55th consecutive quarter as of June 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports 9% Increase in Earnings for the First Six Months of 2021
Palos Verdes Estates, CA – July 15, 2021 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2021 was $9,622,000 ($1.25 basic and fully diluted earnings per share) compared to $8,804,000 ($1.14 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the same period ended June 30, 2020, an increase of $818,000 or 9%. Net income for the quarter ended June 30, 2021 was $4,906,000 ($0.64 basic and fully diluted earnings per share), an increase of $286,000 or 6% from net income of $4,620,000 ($0.60 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the quarter ended June 30, 2020. Net income for the quarter ended June 30, 2021 was $4,906,000 ($0.64 basic and fully diluted earnings per share), an increase of $190,000 or 4% from net income of $4,716,000 ($0.61 basic and fully diluted earnings per share) for the quarter ended March 31, 2021. For the first six months of 2021, the Company’s annualized return on average equity was 12.04% and the annualized return on average assets was 1.43%.
The increase in earnings of $190,000 for the second quarter of 2021 compared to first quarter of 2021 was primarily attributable to a $148,000 increase in net interest income after provision for loan losses, a $74,000 increase in other operating income, and a $101,000 decrease in other operating expenses, partially offset by a $133,000 increase in income tax expense.
Net interest income totaled $9,792,000 in the second quarter of 2021, an increase of $424,000 or 5% from the same period in 2020. This resulted primarily due to an increase in excess interest-bearing assets over interest-bearing liabilities of $15.6 million, offset by a decrease in the interest rate spread from 2.90% to 2.87%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.25% in yield on average interest-earning assets offset by a decrease of 0.22% in yield on average interest-bearing liabilities.
Other operating income increased 22% in the second quarter of 2021 to $262,000 from $214,000 in the second quarter of 2020. Income increased primarily due to timing of annual safe deposit box fees.
Operating expenses increased 1% in the second quarter of 2021 to $3,031,000 from $2,987,000 in the second quarter of 2020.
The Company had no delinquent loans or loans with deferred payments and no foreclosed real estate owned at June 30, 2021. The Company’s allowance for loan losses was $3,727,000, or 0.30% of total loans, at June 30, 2021.
Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report record earnings for both the quarter and first half of 2021. As a result of the efforts of our colleagues, earnings continue to improve, asset quality remains excellent and expenses continue to be well controlled. Trends are positive and we are optimistic about the future”
Malaga’s total assets increased by 6% to $1.393 billion at June 30, 2021 compared to $1.316 billion at June 30, 2020. The loan portfolio at June 30, 2021 was $1.237 billion, an increase of $48.9 million or 4% from June 30, 2020. 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 $780.6 million as of June 30, 2021, an $86.7 million increase from $693.9 million at June 30, 2020. Wholesale deposits increased $7.0 million or 5% from $150.9 million at June 30, 2020 to $157.9 million at June 30, 2021. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $60.0 million and $80.8 million of brokered long-term certificates of deposits as of June 30, 2021. FHLB borrowings decreased $25 million or 8% from $295 million at June 30, 2020 to $270 million at June 30, 2021.
As of June 30, 2021, 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 12.67% and 21.90%, respectively, at June 30, 2021, 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 54th consecutive quarter as of March 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 68th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—May 28, 2021— 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 18, 2021. The dividend will be paid out on or about July 1, 2021. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.10% annualized yield based on our most recent closing price of $24.40. Solid earnings and our strong capital level position 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 54th consecutive quarter as of March 2021. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports 13% Increase in First Quarter Earnings
Palos Verdes Estates, CA – April 16, 2021 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2021 was $4,716,000 ($0.61 basic and fully diluted earnings per share), an increase of $532,000 or 13% from net income of $4,184,000 ($0.54 basic and fully diluted earnings per share) for the quarter ended March 31, 2020. For the first quarter of 2021, the Company’s annualized return on average equity was 11.90% and the annualized return on average assets was 1.43%, as compared to 11.39% and 1.34%, respectively, for the same period in 2020.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2021. The Company’s allowance for loan losses was $3,686,000, or 0.31% of total loans, at March 31, 2021.
Net interest income totaled $9,604,000 in the first quarter of 2021, an increase of $789,000 or 9% from the first quarter of 2020. This increase was due primarily to an increase in excess interest-earning assets over interest-bearing liabilities of $13 million, and an increase of 0.12% in the interest rate spread to 2.90%. The increase in the interest rate spread is primarily attributable to a decrease of 0.42% in the average cost of funds offset by a 0.30% decrease in the yield on average interest-earning assets.
In the first quarter of 2021, operating expenses increased 3% to $3,132,000 from $3,034,000 in the first quarter of 2020. The increase is primarily attributed to increases in compensation of $68,000 and data processing of $21,000.
Randy C. Bowers, Chairman, President and CEO, commented, “The dedicated efforts of our staff in serving our clients under extremely challenging circumstances continues to produce excellent financial results. We are pleased to report a significant increase in earnings for the 1st Quarter 2021 compared with the same period in the prior year. We look forward to continued improvement in the economy and the results of efforts to reduce the effect of the pandemic over the remainder of 2021. We are optimistic about the future and look forward to better days ahead.”
Malaga’s total assets increased by 6% to $1.332 billion at March 31, 2021 compared to $1.251 billion at March 31, 2020. The loan portfolio at March 31, 2021 was $1.202 billion, an increase of $44 million or 4% from March 31, 2020. 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 $746 million as of March 31, 2021, a $94 million increase from $652 million at March 31, 2020. Wholesale deposits, comprised mainly of State of California certificates of deposit and brokered deposits, totaled $127 million as of March 31, 2021, a $12 million decrease from $139 million at March 31, 2020. FHLB borrowings decreased $14 million or 5% from $289 million at March 31, 2020 to $275 million at March 31, 2021.
As of March 31, 2021, 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 22.43%, respectively, at March 31, 2021, 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 53rd consecutive quarter as of December 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 67th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—March 12, 2021— 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 March 25, 2021. The dividend will be paid out on or about April 1, 2021. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.33% annualized yield based on our most recent closing price of $23.11. Solid earnings and our strong capital level position 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 53rd consecutive quarter as of December 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings Year-To-Date 2020 19% Increase
Palos Verdes Estates, CA – January 26, 2021 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2020 was $18,335,000 ($2.38 basic and fully diluted earnings per share) compared to $15,387,000 ($2.01 basic and $2.00 fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the twelve months ended December 31, 2019, a 19% increase. Net income for the quarter ended December 31, 2020 was $4,743,000 ($0.62 basic and fully diluted earnings per share), an increase of $456,000 or 11% from net income of $4,287,000 for the quarter ended December 31, 2019 ($0.56 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020). For the twelve months ended December 31, 2020, the Company’s annualized return on average equity was 12.15% and the annualized return on average assets was 1.43%, as compared to 10.94% and 1.33%, respectively, for the same period in 2019.
The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2020, nor did it have any material exposure to loans modified as a result of the COVID-19 pandemic. The Company’s allowance for loan losses was $3,686,000, or 0.31% of total loans, at December 31, 2020.
For 2020, net interest income totaled $37,638,000, an increase of $4,568,000 or 14% from 2019. This increase reflected higher average interest-earning assets of $126.7 million and an increase of 0.10% in the interest rate spread to 2.92%. The increase in the interest rate spread is primarily attributable to a decrease in the average cost of funds of 0.29% offset by an decrease in the yield on average interest-earning assets of 0.19 %.
Provision for loan losses decreased $191,000 to $162,000 in 2020 from $353,000 in 2019. The decrease is primarily due to lower growth in the loan portfolio from $149.0 million in 2019 to $53.6 million in 2020.
Other operating income decreased 10% in 2020 to $785,000 from $870,000 in 2019. Income decreased primarily due to deposit related fees.
Operating expenses increased $517,000 or 4% to $12,292,000 in 2020 from $11,775,000 in 2019. The increase is primarily attributed to increases in deposit insurance premiums of $262,000, data processing $92,000, professional services $62,000 and general and administrative expenses of $54,000. In 2019, the company received a one-time deposit insurance premium credit of $230,000 from the FDIC for our contributions to the Deposit Insurance Fund (DIF).
Randy C. Bowers, Chairman, President and CEO, remarked, “We are extremely pleased to report record earnings for the full year 2020 and an increase in quarterly earnings of 11% from the same period in 2019. These strong operating results reflect the extraordinary efforts of our dedicated staff to continue to serve our clients in very challenging conditions. We appreciate the hard work of our team and are delighted to have been able to reward them with additional compensation during this once in a lifetime pandemic...”
Malaga Bank’s total assets increased to $1.312 billion at December 31, 2020 compared to $1.248 billion at December 31, 2019. The loan portfolio at December 31, 2020 was $1.197 billion, an increase of $53.6 million or 5% from December 31, 2019. 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 $737 million as of December 31, 2020, a $69 million or 10% increase from $668 million at December 31, 2019. Wholesale deposits decreased $18.7 million or 14% from $135.3 million at December 31, 2019. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $60 million and $39.6 million of brokered long-term certificates of deposit at December 31, 2020. FHLB borrowings were $280 million as of December 31, 2020, a $5 million increase from $275 million at December 31, 2019.
As of December 31, 2020, 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 12.80% and 22.82%, respectively, at December 31, 2020 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 2021, and a special stock dividend of 5% per share payable on December 29, 2020, to shareholders of record as of December 14, 2020.
Mr. Bowers concluded, “We appreciate the support and loyalty of our employees, shareholders and Board of Directors and look forward to improving circumstances as we progress in 2021.”
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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 52nd consecutive quarter as of September 2020. 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 Bank 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces Special Year End 2020 Stock Dividend in Addition to First Quarter 2021 Cash Dividend
PALOS VERDES ESTATES, CALIF.—November 13, 2020— 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, 2020 to shareholders of record at the close of business on December 14, 2020. 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, 2020 to be paid on or about January 4, 2021. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 66th consecutive quarterly dividend. This will result in total cash dividends paid in 2020 of $1.00 per share for a 4.18% annual yield based on a closing share price of $23.90 on November 12, 2020 in addition to the special stock dividend. This is the 9th 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 51st consecutive quarter in June 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings
Palos Verdes Estates, CA – October 16, 2020 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2020 was $4,788,000 ($0.65 basic and fully diluted earnings per share), an increase of $906,000 or 23% from net income of $3,882,000 ($0.53 basic and fully diluted earnings per share, as adjusted for stock dividends declared on November 15, 2019) for the quarter ended September 30, 2019, and an increase of $168,000 or 4% from net income of $4,620,000 ($0.63 basic and fully diluted earnings per share) for the quarter ended June 30, 2020. Net income for the nine months ended September 30, 2020 was $13,592,000 ($1.85 basic and fully diluted earnings per share) compared to $11,100,000 ($1.52 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2019) for the nine months ended September 30, 2019 , an increase of 22%. For the first nine months of 2020, the Company’s annualized return on average equity was 12.12% and the annualized return on average assets was 1.42%.
The increase in earnings of $168,000 for the third quarter of 2020 compared to second quarter 2020 was primarily attributable to a $363,000 increase in net interest income after provision for loan losses, offset by a $35,000 decrease in other operating income, a $77,000 increase in other operating expenses, and an $83,000 increase in income tax expense.
Net interest income totaled $9,669,000 in the third quarter of 2020, an increase of $1,389,000 or 17% from the third quarter of 2019. This result was primarily due to an increase in average interest-earning assets of $133,546,000 and an increase in the interest rate spread from 2.77% to 2.94%. The increase in the interest rate spread is primarily attributable to a decrease of 0.43% in yield on average interest-bearing liabilities offset by a decrease of 0.26% in yield on average interest-earning assets.
Other operating income decreased 13% in the third quarter of 2020 to $179,000 from $205,000 in the third quarter of 2019. Income decreased primarily due to deposit related fees.
Operating expenses increased $341,000 in the third quarter of 2020 to $3,064,000 from $2,723,000 in the third quarter of 2019. The increase was primarily due to an increase in data processing costs, and the one-time assessment credit in 2019 from the FDIC for our contributions to the Deposit Insurance Fund (DIF).
The Company had no delinquent loans or foreclosed real estate owned at September 30, 2020. The Company’s allowance for loan losses was $3,640,000, or 0.31% of total loans, at September 30, 2020.
Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to report record earnings for both the 3rd quarter and also year-to-date 2020. In an extremely difficult environment our colleagues rose to the occasion and continued to provide exceptional service to our clients. We are grateful for their efforts and that we all remain safe and healthy.”
Malaga Bank’s total assets increased by 4% to $1.283 billion at September 30, 2020 compared to $1.232 billion at September 30, 2019. The loan portfolio at September 30, 2020 was $1.187 billion, an increase of $59.7 million or 5% from September 30, 2019. 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 $699.1 million as of September 30, 2020, a $48.2 million increase from $650.9 million at September 30, 2019. Wholesale deposits decreased $14.3 million or 11% from $124.9 million at September 30, 2019 to $110.6 million at September 30, 2020. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $60 million and $39.6 million of brokered long-term certificates of deposits as of September 30, 2020. FHLB borrowings increased $5 million or 2% from $290 million at September 30, 2019 to $295 million at September 30, 2020.
As of September 30, 2020, 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 12.51% and 21.11%, respectively, at September 30, 2020, 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 51st consecutive quarter as of June 2020. 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 Bank 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces the Retirement of Founding Director Leo Lee and Two New Appointments to its Board of Directors
Palos Verdes Estates, CA – September 11, 2020 – Malaga Financial Corporation (OTCPink:MLGF) - Randy Bowers, Chairman of the Board and President/CEO, today announced the retirement of founding director, Leo Lee, from the Board of Directors of Malaga Financial Corporation and its wholly owned subsidiary Malaga Bank, FSB.
Mr. Bowers remarked, “We are extremely grateful to Mr. Leo Lee for his more than 35 years of service on the boards of both Malaga Financial Corporation and Malaga Bank. Mr. Lee’s wisdom and business judgment were invaluable to the success of the bank, including his term as Chairman of the Board in 2013-2014.” Mr. Lee offers his resignation so he can attend to family matters in Taiwan, and will continue to be a part of the Malaga family and the bank he helped establish.
Bowers also announced the appointment of two new directors to the boards of both Malaga Financial Corporation and Malaga Bank, Herbert Ming Chang Lee and Christopher M. Adishian.
Mr. Herbert Ming Chang Lee has over 20 years of experience in commercial real estate development and management in Southern California markets, in addition to his background in investment analysis. He attended the University of California San Diego for his undergraduate degree in Economics and the University of California Irvine for his Master’s in Business Administration. Herbert has strong ties in the Palos Verdes community, having lived here most of his life, and is active in a number of community organizations.
Mr. Christopher M. Adishian joins Malaga Financial Corporation and Malaga Bank boards with impressive legal, financial, and investment experience, including his current legal practice, Adishian Law Group, and as a licensed California real estate broker. Christopher graduated with a degree in Mathematical Economics from University of California Berkeley and interned at the San Francisco Federal Reserve and the Board of Governors of the Federal Reserve in Washington D.C. Mr. Adishian received his law degree from Loyola Law School and is a member of several local bar associations. Having grown up in Palos Verdes, Christopher remains involved in the South Bay community and is active in many community organizations.
“We are pleased to welcome Herbert and Chris as new directors,” said Bowers. “Their success and knowledge in their respective industries, along with their life-long connection to the community, complement the strengths of the current Directors. They will both be valuable additions to Malaga Financial Corporation and Malaga Bank, FSB as we continue to execute our business strategy.”
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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 51st consecutive quarter as of June 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 65th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—September 11, 2020 - 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 24, 2020. The dividend will be paid out on or about October 1, 2020. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.56% annualized yield based on our most recent closing price of $21.94. “We are proud of the dedication of our colleagues in serving our clients during this very difficult period of time. We continue to conduct normal banking activity Monday-Friday at our branches in addition to offering online banking solutions 24-7. We are extremely grateful for the efforts of our staff and the loyalty of our clients.”
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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 51st consecutive quarter as of June 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports 23% Increase in Second Quarter Earnings
Palos Verdes Estates, CA – July 17, 2020 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2020 was $4,620,000 ($0.63 basic and fully diluted earnings per share), an increase of $859,000 or 23% from net income of $3,761,000 ($0.52 basic and fully diluted earnings per share, as adjusted for stock dividends declared on November 15, 2019) for the quarter ended June 30, 2019. Net income for the quarter ended June 30, 2020 was $4,620,000 ($0.63 basic and fully diluted earnings per share), an increase of $436,000 or 10% from net income of $4,184,000 ($0.57 basic and fully diluted earnings per share) for the quarter ended March 31, 2020. Net income for the six months ended June 30, 2020 was $8,804,000 ($1.20 basic and fully diluted earnings per share) compared to $7,218,000 ($0.99 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2019) for the six months ended June 30, 2019. For the first six months of 2020, the Company’s annualized return on average equity was 11.89% and the annualized return on average assets was 1.39%.
The increase in earnings of $436,000 for the second quarter of 2020 compared to first quarter 2020 was primarily attributable to a $545,000 increase in net interest income after provision for loan losses, $10,000 increase in other operating income, and a $47,000 decrease in other operating expenses, partially offset by a $166,000 increase in income tax expense.
Net interest income totaled $9,368,000 in the second quarter of 2020, an increase of $1,311,000 or 16% from the second quarter of 2019. This resulted primarily due to an increase in average interest earning assets of $157,565,000 and an increase in the interest rate spread from 2.82% to 2.90%. The increase in the interest rate spread is primarily attributable to a decrease of 0.29% in yield on average interest-bearing liabilities offset by a decrease of 0.21% in yield on average interest-earning assets.
Other operating income decreased 18% in the second quarter of 2020 to $214,000 from $261,000 in the second quarter of 2019. Income decreased primarily due to timing of annual safe deposit box fees.
Operating expenses decreased $5,000 in the second quarter of 2020 to $2,987,000 from $2,992,000 in the second quarter of 2019.
The Company had no delinquent loans and no foreclosed real estate owned at June 30, 2020. The Company’s allowance for loan losses was $3,640,000, or 0.31% of total loans, at June 30, 2020. There were no loans with deferred payments in the portfolio at June 30, 2020.
Randy C. Bowers, Chairman, President and CEO, commented, “The efforts of our colleagues, especially the front line staff, resulted in another quarter of commendable achievement. Earnings continue to improve, asset quality remains excellent and all operating metrics are positive. Most importantly we all remain safe and healthy in these difficult times.”
Malaga’s total assets increased by 15% to $1.316 billion at June 30, 2020 compared to $1.147 billion at June 30, 2019. The loan portfolio at June 30, 2020 was $1.188 billion, an increase of $138.6 million or 13% from June 30, 2019. 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 $693.9 million as of June 30, 2020, a $48.2 million increase from $645.7 million at June 30, 2019. Wholesale deposits increased $26.5 million or 21% from $124.4 million at June 30, 2019 to $150.9 million at June 30, 2020. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $118 million and $22.6 million of brokered long-term certificates of deposits as of June 30, 2020. FHLB borrowings increased $82 million or 38% from $213 million at June 30, 2019 to $295 million at June 30, 2020.
As of June 30, 2020, 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 12.56% and 21.04%, respectively, at June 30, 2020, 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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 50th consecutive quarter as of March 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 64th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—May 29, 2020— 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 19, 2020. The dividend will be paid out on or about July 1, 2020. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.55% annualized yield based on our most recent closing price of $22.00. Strong earnings and capital levels enable us to continue to reward our shareholders in spite of an extremely challenging operating environment over recent months.”
Mr. Bowers continued, “We are extremely proud of the extraordinary efforts of our colleagues during this period, which includes accommodating all loan requests from local businesses and non-profits for the SBA Paycheck Protection Program while conducting normal banking activity Monday-Friday at our branches.”
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. Malaga Bank has been named by DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 50th consecutive quarter as of March 2020. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports 21% Increase in First Quarter Earnings
Palos Verdes Estates, CA – April 24, 2020 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2020 was $4,184,000 ($0.57 basic and fully diluted earnings per share), an increase of $727,000 or 21% from net income of $3,457,000 ($0.47 basic and fully diluted earnings per share) for the quarter ended March 31, 2019. For the first quarter of 2020, the Company’s annualized return on average equity was 11.39% and the annualized return on average assets was 1.34%, as compared to 10.05% and 1.26%, respectively, for the same period in 2019.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2020. The Company’s allowance for loan losses was $3,581,000, or 0.31% of total loans, at March 31, 2020.
Net interest income totaled $8,815,000 in the first quarter of 2020, an increase of $860,000 or 11% from the first quarter of 2019. This increase reflected higher average interest-earning assets of $154 million offset by a decrease of 0.08% in the interest rate spread to 2.78%. The decrease in the interest rate spread is primarily attributable to the decrease in the yield on average interest-earning assets of 0.08%.
In the first quarter of 2020, operating expenses decreased 4% to $3,034,000 from $3,159,000 in the first quarter of 2019. Decreased costs were primarily related to compensation expenses.
Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report a significant increase in earnings for the 1st Quarter 2020 compared with the prior year. This is primarily a result of substantial growth in our loan portfolio coupled with tight cost control. Capital levels are strong, quality remains excellent and our efficiency ratio continues to be one of the best in the industry. As we are working through the challenge presented by the effects of the coronavirus pandemic we feel fortunate to have the benefit of a strong balance sheet and a dedicated staff of colleagues making exceptional efforts to serve our customers while keeping everyone safe. We are optimistic about the future and look forward to better days ahead.”
Malaga’s total assets increased by 12% to $1.251 billion at March 31, 2020 compared to $1.117 billion at March 31, 2019. The loan portfolio at March 31, 2020 was $1.158 billion, an increase of $138 million or 14% from March 31, 2019. 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 $652 million as of March 31, 2020, an $8 million decrease from $660 million at March 31, 2019. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $139 million as of March 31, 2020, a $42 million increase from $96.9 million at March 31, 2019. FHLB borrowings increased $92 million or 47% from $197 million at March 31, 2019 to $289 million at March 31, 2020.
As of March 31, 2020, 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 12.70% and 21.93%, respectively, at March 31, 2020, 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. Malaga Bank has been named by the DepositAccounts.com as one of the Top 200 Healthiest Banks out of the 5,035 banks analyzed across the United States. 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. 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 Bauer’s premier Top 5-Star rating for the 49th consecutive quarter as of December 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 63rd Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—March 13, 2020— 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 March 24, 2020. The dividend will be paid out on or about April 1, 2020. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 4.87% annualized yield based on our most recent closing price of $20.55. Solid earnings and our strong capital level position 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 49th consecutive quarter as of December 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Record Earnings Fourth Quarter and Year-To-Date 2019
Palos Verdes Estates, CA – January 17, 2020 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2019 was $4,287,000 ($0.59 basic and $0.58 fully diluted earnings per share), an increase of $442,000 or 11% from net income of $3,845,000 for the quarter ended December 31, 2018 ($0.53 basic and $0.52 fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2019). Net income for the twelve months ended December 31, 2019 was $15,387,000 ($2.11 basic and $2.10 fully diluted earnings per share) compared to $15,305,000 ($2.11 basic and $2.09 fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2019) for the twelve months ended December 31, 2018, a 1% increase. For the twelve months ended December 31, 2019, the Company’s annualized return on average equity was 10.94% and the annualized return on average assets was 1.33%, as compared to 11.65% and 1.44%, respectively, for the same period in 2018.
The Company did not have any delinquent loans or real estate owned at December 31, 2019. The Company’s allowance for loan losses was $3,523,000, or 0.31% of total loans, at December 31, 2019.
For 2019, net interest income totaled $33,069,000, an increase of $492,000 or 2% from 2018. This increase reflected higher average interest-earning assets of $94.6 million offset by a decrease of 0.26% in the interest rate spread to 2.81%. The decrease in the interest rate spread is primarily attributable to an increase in the average cost of funds of 0.35% offset by an increase in the yield on average interest-earning assets of 0.09%.
Provision for loan losses increased $304,000 to $353,000 in 2019 from $49,000 in 2018. The increase is primarily due to growth in the loan portfolio.
Operating expenses decreased $179,000 or 2% to $11,775,000 in 2019 from $11,954,000 in 2018. The decrease is primarily attributed to a deposit insurance premiums credit of $230,000.
Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to report record earnings for both the 4th quarter and full year 2019. Loan portfolio growth for 2019 was 15% or $149 million and quarterly earnings increased 11% from the same period in 2018. These strong operating results enabled us to once again reward our shareholders with a special year-end 5% stock dividend in addition to quarterly cash dividends.”
Malaga Bank’s total assets increased to $1.248 billion at December 31, 2019 compared to $1.088 billion at December 31, 2018. The loan portfolio at December 31, 2019 was $1.143 billion, an increase of $149 million or 15% from December 31, 2018. 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 $668 million as of December 31, 2019, an $7 million increase from $661 million at December 31, 2018. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $135 million as of December 31, 2019 an increase of $38 million or 39% from December 31, 2018. FHLB borrowings were $275 million as of December 31, 2019, a $100 million increase from $175 million at December 31, 2018. The increase in wholesale deposits and FHLB borrowings was used to fund the increase in loans.
As of December 31, 2019, 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 12.70% and 22.88%, respectively, at December 31, 2019 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 2020, and a special stock dividend of 5% per share payable on December 27, 2019, to shareholders of record as of December 13, 2019.
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 48th consecutive quarter as of September 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces Special Year End 2019 Stock Dividend in Addition to First Quarter 2020 Cash Dividend
PALOS VERDES ESTATES, CALIF.—November 15, 2019— 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 27, 2019 to shareholders of record at the close of business on December 13, 2019. 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 13, 2019 to be paid on or about January 3, 2020. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 62th consecutive quarterly dividend. This will result in total cash dividends paid in 2019 of $1.00 per share for a 4.39% annual yield based on a closing share price of $22.80 on November 14, 2019 in addition to the special stock dividend. This is the 8th 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 47th consecutive quarter in June 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Increased Earnings and Strong Growth in the Loan Portfolio
Palos Verdes Estates, CA – October 11, 2019 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2019 was $3,882,000 ($0.56 basic and $0.55 fully diluted earnings per share), an increase of $121,000 or 3% from net income of $3,761,000 ($0.54 basic and fully diluted earnings per share) for the quarter ended June 30, 2019. Compared to the same quarter last year, net income increased $16,000 from $3,866,000 ($0.58 basic and fully diluted earnings per share, as adjusted for stock dividend declared on November 19, 2018). Net income for the nine months ended September 30, 2019 was $11,100,000 ($1.60 basic and $1.59 fully diluted earnings per share) compared to $11,460,000 ($1.66 basic and $1.65 fully diluted earnings per share, as adjusted for the stock dividend declared on November 19, 2018) for the nine months ended September 30, 2018. For the first nine months of 2019, the Company’s annualized return on average equity was 10.60% and the annualized return on average assets was 1.30%.
The increase in earnings of $121,000 for the third quarter of 2019 compared to second quarter 2019 was primarily attributable to a $223,000 increase in net interest income and a $269,000 decrease in other operating expenses, partially offset by an increase in provision for loan losses of $265,000, a $56,000 decrease in other operating income and a $50,000 increase in income tax expense. The increase in provision for loan losses of $265,000 is due to increase in loans outstanding of $77,864,000.
Net interest income totaled $8,280,000 in the third quarter of 2019, an increase of $177,000 or 2% from the third quarter of 2018. This resulted from an increase in average interest earning assets of $119,803,000 offset by a decrease in the interest rate spread from 3.07% to 2.77%. The decrease in the interest rate spread is primarily attributable to an increase of 0.36% in yield on average interest-bearing liabilities offset by an increase of 0.06% in yield on average interest-earning assets.
Other operating income increased 4% to $205,000 in the third quarter of 2019 from $197,000 in the third quarter of 2018.
Operating expenses decreased 7% to $2,723,000 in the third quarter of 2019 from $2,938,000 in the third quarter of 2018. The decrease is due primarily to assessment credits received from FDIC for our contributions to the Deposit Insurance Fund (DIF) reserve ratio exceeding 1.35%.
The Company had one 60-89 days delinquent loan in the amount of $233,000 and one 90+ days delinquent loan in the amount of $321,000. The Company had no foreclosed real estate owned at September 30, 2019. The Company’s allowance for loan losses was $3,468,000, or 0.31% of total loans, at September 30, 2019.
Randy C. Bowers, Chairman, President and CEO, commented, “The 3rd quarter continued to be challenging. Competition for deposits intensified while rates on loan originations continued to decline. Growth in the loan portfolio was strong and helped to mitigate the effects of further flattening of the yield curve. Our capital levels are strong, quality remains excellent and our efficiency ratio continues to be one of the best in the industry. We are optimistic as we approach the 4th quarter and the new year .”
Malaga’s total assets increased 15% to $1.232 billion at September 30, 2019 compared to $1.069 billion at September 30, 2018. The loan portfolio at September 30, 2019 was $1.127 billion, an increase of $148 million or 15% from September 30, 2018. 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 $650.9 million as of September 30, 2019, a $4.0 million decrease from $654.9 million at September 30, 2018. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $124.9 million as of September 30, 2019, a $27.3 million increase from $97.6 million at September 30, 2018. FHLB borrowings increased $127 million or 78% from $163 million at September 30, 2018 to $290 million at September 30, 2019. The increase in State of California certificates of deposit and FHLB borrowings were used to fund the increase in loans.As of September 30, 2019, 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 13.01% and 22.90%, respectively, at September 30, 2019, 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 with assets over $1 billion, 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 47th consecutive quarter as of June 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 61st Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—September 13, 2019— 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 23, 2019. The dividend will be paid out on or about October 1, 2019. Randy C. Bowers, President and CEO, remarked, “We are pleased that our financial condition and strong operating performance enable us to continue to reward our shareholders with a quarterly cash dividend. This 25 cent quarterly cash dividend represents a 4.35 % annualized yield based on our most recent closing price of $23.00.”
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 47th consecutive quarter as of June 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Reports Increased Earnings
Palos Verdes Estates, CA – July 16, 2019 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2019 was $3,761,000 ($0.54 basic and fully diluted earnings per share), an increase of $304,000 or 9% from net income of $3,457,000 ($0.50 basic and fully diluted earnings per share) for the quarter ended March 31, 2019. Compared to the same quarter last year, net income increased $16,000 from $3,745,000 ($0.54 basic and fully diluted earnings per share, as adjusted for stock dividend declared on November 19, 2018). Net income for the six months ended June 30, 2019 was $7,218,000 ($1.04 basic and fully diluted earnings per share) compared to $7,594,000 ($1.10 basic and $1.09 fully diluted earnings per share, as adjusted for the stock dividend declared on November 19, 2018) for the six months ended June 30, 2018. For the first six months of 2019, the Company’s annualized return on average equity was 10.43% and the annualized return on average assets was 1.30%.
The increase in earnings of $304,000 for the second quarter of 2019 compared to first quarter 2019 was primarily attributable to a $200,000 increase in net interest income after provision for loan losses, $63,000 increase in other operating income, and a $167,000 decrease in other operating expenses, partially offset by a $126,000 increase in income tax expense.
Net interest income totaled $8,057,000 in the second quarter of 2019, a decrease of $42,000 or 1% from the second quarter of 2018. This resulted from a decrease in the interest rate spread from 3.06% to 2.82%, offset partially by the increase in average interest earning assets of $66,626,000. The decrease in the interest rate spread is primarily attributable to an increase of 0.38% in yield on average interest-bearing liabilities offset by an increase of 0.14% in yield on average interest-earning assets.
Other operating income increased 35% in the second quarter of 2019 to $261,000 from $194,000 in the second quarter of 2018. Income increased primarily due to timing of annual safe deposit box fees.
Operating expenses increased 1% in the second quarter of 2019 to $2,992,000 from $2,950,000 in the second quarter of 2018.
The Company had one 60-89 days delinquent loan totaling $321,000 and no foreclosed real estate owned at June 30, 2019. The Company’s allowance for loan losses was $3,220,000, or 0.31% of total loans, at June 30, 2019.
Randy C. Bowers, Chairman, President and CEO, commented, “The 2nd quarter continued to present a challenging operating environment. Upward pressure on rates for deposits intensified while rates on loan originations continued to decline. Growth in the loan portfolio was strong and helped to mitigate the effects of further flattening of the yield curve. Our capital levels are strong, quality remains excellent and our efficiency ratio continues to be one of the best in the industry. We look forward to the remainder of 2019 and appreciate the contributions of our colleagues and support of our shareholders.”
Malaga’s total assets increased by 8% to $1.147 billion at June 30, 2019 compared to $1.063 billion at June 30, 2018. The loan portfolio at June 30, 2019 was $1.050 billion, an increase of $76 million or 8% from June 30, 2018. 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 $645.7 million as of June 30, 2019, a $3.5 million decrease from $649.2 million at June 30, 2018. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $124.4 million as of June 30, 2019, a $29.1 million increase from $95.3 million at June 30, 2018. FHLB borrowings increased $46 million or 28% from $167 million at June 30, 2018 to $213 million at June 30, 2019. The increase in State of California certificates of deposit and FHLB borrowings were used to fund increase in loans.
As of June 30, 2019, 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 13.43% and 24.01%, respectively, at June 30, 2019, 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 with assets over $1 billion, 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 46th consecutive quarter as of March 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces New Chairman of the Board
PALOS VERDES ESTATES, CALIF.—June 27, 2019— Malaga Financial Corporation (OTCPink:MLGF) The Board of Directors of Malaga Financial Corporation announced today the election of Randy C. Bowers to the position of Chairman of the Board. Mr. Bowers will also serve as Chairman of its subsidiary, Malaga Bank FSB. Mr. Bowers has served as President and Chief Executive Officer of Malaga Financial Corporation and Malaga Bank since 2006 and will now assume the responsibilities as Chairman of the Board in addition to continuing as President and Chief Executive Officer of both organizations. Mr. Bowers joined Malaga Bank in 2002 as Executive Vice President and Chief Lending Officer.
Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank with assets over $1 billion, 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 46th consecutive quarter as of March 2019. 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
Chairman, President and Chief Executive Officer
Malaga Financial Corporation
(310) 375-9000
rbowers@malagabank.com
Malaga Financial Corporation Announces 60th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—May 24, 2019— 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 24, 2019. The dividend will be paid out on or about July 1, 2019. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly cash dividend which represents a 4.26% annualized yield based on our most recent closing price of $23.50. Solid 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 45th consecutive quarter as of December 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 Strong First Quarter Earnings
Palos Verdes Estates, CA – April 15, 2019 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2019 was $3,457,000 ($0.50 basic and fully diluted earnings per share), a decrease of $392,000 or 10% from net income of $3,849,000 ($0.56 basic and $0.55 fully diluted earnings per share) for the quarter ended March 31, 2018. For the first quarter of 2019, the Company’s annualized return on average equity was 10.05% and the annualized return on average assets was 1.26%, as compared to 12.03% and 1.48%, respectively, for the same period in 2018.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2019. The Company’s allowance for loan losses was $3,241,000, or 0.32% of total loans, at March 31, 2019.
Net interest income totaled $7,955,000 in the first quarter of 2019, a decrease of $177,000 or 2% from the first quarter of 2018. This resulted from a decrease in the interest rate spread from 3.11% to 2.86%. The decrease in the interest rate spread is primarily attributable to an increase of 0.47% in yield on average interest-bearing liabilities offset by an increase of 0.22% in yield on average interest-earning assets.
Operating expenses increased 3% in the first quarter of 2019 to $3,159,000 from $3,062,000 in the first quarter of 2018. Increased costs were primarily related to compensation expenses.
Randy C. Bowers, President and CEO, commented, “We are generally satisfied with our 1st Quarter performance in an increasingly difficult environment. Fierce competition for deposits and continued flattening of the yield curve have resulted in additional pressure on our interest spread. We have been successful in partially offsetting this trend with increased growth in our loan portfolio. Capital levels are strong, quality remains excellent and our efficiency ratio continues to be one of the best in the industry. We look forward to continuing to execute our strategy in 2019 and appreciate the contributions of our colleagues and support of our shareholders.”
Malaga’s total assets increased by 7% to $1.117 billion at March 31, 2019 compared to $1.047 billion at March 31, 2018. The loan portfolio at March 31, 2019 was $1.020 billion, an increase of $52 million or 5% from March 31, 2018. 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 $660.2 million as of March 31, 2019, a $328,000 increase from $659.9 million at March 31, 2018. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $96.9 million as of March 31, 2019, a $182,000 increase from $96.7 million at March 31, 2018. FHLB borrowings increased $55 million or 39% from $142 million at March 31, 2018 to $197 million at March 31, 2019. The increase in FHLB borrowings was used to fund increase in loans.
As of March 31, 2019, 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 13.68% and 24.07%, respectively, at March 31, 2019, 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 45th consecutive quarter as of December 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 Announces 59th Consecutive Quarterly Cash Dividend
PALOS VERDES ESTATES, CALIF.—March 8, 2019— 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 25, 2019. The dividend will be paid out on or about April 1, 2019. Randy C. Bowers, President and CEO, remarked, “We are pleased to announce the 25 cent quarterly dividend which represents a 3.84% annualized yield based on our most recent closing price of $26.05. Solid earnings and our strong capital level position 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 45th consecutive quarter as of December 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 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