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Press Release

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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd consecutive quarter in June 2018. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

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

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

As of September 30, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under those regulations. Core capital and risk-based capital ratios were 13.70% and 24.73%, respectively, at September 30, 2018 significantly exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd  consecutive quarter as of June 2018.   Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 57th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 43rd consecutive quarter as of June 2018. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

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

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

As of June 30, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under those regulations. Core capital and risk-based capital ratios were 13.52% and 24.74%, respectively, at June 30, 2018 significantly exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 42nd consecutive quarter as of March 2018.   Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 56th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 41st consecutive quarter as of December 2017. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS 26% INCREASE IN FIRST QUARTER EARNINGS

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

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

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

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

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

Malaga’s total assets increased by 5% to $1.047 billion at March 31, 2018 compared to $993 million at March 31, 2017. The loan portfolio at March 31, 2018 was $968 million, an increase of $52 million or 6% from March 31, 2017. Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $660 million as of March 31, 2018, an $18 million or 3% decrease from $678 million at March 31, 2017. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of March 31, 2018, a $20 million or 26% increase from $77 million at March 31, 2017. The increase in wholesale deposits was used to fund the decrease in retail deposits. FHLB borrowings increased $43 million or 43% from $99 million at March 31, 2017 to $142 million at March 31, 2018. The increase in FHLB borrowings was used to fund increase in loans.

As of March 31, 2018, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.42% and 24.25%, respectively, at March 31, 2018, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively. 

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 41st  consecutive quarter as of December 2017.  Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 55th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 40th consecutive quarter as of September 2017. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

Malaga’s total assets increased $60 million or 6% to $1.041 billion at December 31, 2017. The loan portfolio at December 31, 2017 was $957 million, an increase of $53 million or 6% from December 31, 2016. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $659 million as of December 31, 2017, a $17 million or 3% decrease from $676 million at December 31, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of December 31, 2017, a $19 million or 24% increase from $78 million at December 31, 2016. FHLB borrowings increased $49 million or 54% from $90 million at December 31, 2016 to $139 million at December 31, 2017. The increase in wholesale deposits was used to fund the decrease in retail deposits and the increase in FHLB borrowings was used to fund the increase in loans.

As of December 31, 2017, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.23% and 24.18%, respectively, at December 31, 2017, significantly exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.

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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 40th consecutive quarter as of September 2017. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over ten years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded their premier Top 5-Star rating for the 38th consecutive quarter in June 2017. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS RECORD QUARTERLY EARNINGS – UP 16%

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

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

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

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

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

Malaga’s total assets increased to $1.03 billion at September 30, 2017 compared to $999 million at September 30, 2016. The loan portfolio at September 30, 2017 was $953 million. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $671 million as of September 30, 2017, a $1 million increase from $670 million at September 30, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $98 million as of September 30, 2017, an $8 million increase or 9% from $90 million at September 30, 2016. FHLB borrowings were $120 million as of September 30, 2017, a $26 million increase from $94 million at September 30, 2016. The weighted average cost of funds for the third quarter of 2017 was 0.63% versus 0.69% for the third quarter of 2016.

As of September 30, 2017, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.12% and 23.81%, respectively, at September 30, 2017 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 52nd consecutive quarter.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors.  As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 53rd CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors.  As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

Malaga’s total assets increased to $1.0 billion at June 30, 2017 compared to $994 million at June 30, 2016. The investment portfolio at June 30, 2017 was $52 million, a decrease of $27 million or 34% from June 30, 2016 and is comprised of fed funds sold and certificates of deposit. The loan portfolio at June 30, 2017 was $941 million, an increase of $53 million or 6% from June 30, 2016.  Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $666 million as of June 30, 2017, a $2 million increase from $664 million at June 30, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $97 million as of June 30, 2017, a $9 million increase or 10% from $89 million at June 30, 2016. FHLB borrowings were $117 million as of June 30, 2017, a $19 million increase from $98 million at June 30, 2016. The weighted average cost of funds for the second quarter of 2017 was 0.57% versus 0.70% for the second quarter of 2016.

As of June 30, 2017, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.12% and 23.79%, respectively, at June 30, 2017 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 52nd CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at ww.malagabank.com

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED FIRST QUARTER EARNINGS

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

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

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

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

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

Malaga’s total assets decreased by 2% to $993 million at March 31, 2017 compared to $1.012 billion at March 31, 2016. The loan portfolio at March 31, 2017 was $916 million, an increase of $28 million or 3% from March 31, 2016. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $678 million as of March 31, 2017, a $4 million or 1% decrease from $682 million at March 31, 2016. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $77 million as of March 31, 2017, a $14 million or 16% decrease from $91 million at March 31, 2016.

As of March 31, 2017, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.20% and 23.50%, respectively, at March 31, 2017, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at ww.malagabank.com

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 51st CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at ww.malagabank.com

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS AND DIVIDENDS

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

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

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

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

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

Malaga’s total assets decreased $3.0 million or less than 1% to $981 million at December 31, 2016. The loan portfolio at December 31, 2016 was $904 million, an increase of $12 million or 1% from December 31, 2015.  Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $676 million as of December 31, 2016, an $11 million or 2% increase from $665 million at December 31, 2015. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $78 million as of December 31, 2016, a $14 million or 16% decrease from $92 million at December 31, 2015.  FHLB borrowings increased $2 million or 2% from $88 million at December 31, 2015 to $90 million at December 31, 2016.  The retail deposit growth was used to fund the increase in loans.

As of December 31, 2016, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 12.85% and 23.85%, respectively, at December 31, 2016, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. 

In the fourth quarter, the Company declared a quarterly cash dividend of 25 cents per share, payable in January 2017 and a special dividend of 10 cents per share payable in December 2016. The quarterly dividend reflected an 11% increase in the quarterly dividend amount in effect for the past four quarters.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at ww.malagabank.com

Contact:

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


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

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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com

Contact:

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


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

Palos Verdes Estates, CA—November 18, 2016 – Malaga Financial Corporation (OTCPink:MLGF) - Malaga Financial Corporation announced today that its Board of Directors had declared a special cash dividend in the amount of 10 cents per share payable to shareholders of record at the close of business on December 19, 2016. The dividend will be paid on or about December 27, 2016. In addition, an increase in the quarterly dividend to 25 cents was declared payable to shareholders of record at the close of business on January 4, 2017 to be paid on or about January 11, 2017. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end dividend in addition to an increase in the amount of our 48th consecutive quarterly dividend. This will result in total dividends paid in 2016 of $1.00 per share for a 4.31% annual yield based on a closing share price of $23.20 on November 17, 2016. This is the 5th consecutive year that we have declared a special year-end dividend along with an increase in the quarterly dividend.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at ww.malagabank.com

Contact:

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


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

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

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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS STRONG THIRD QUARTER EARNINGS

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

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

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

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

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

Malaga’s total assets increased to $999 million at September 30, 2016 compared to $980 million at September 30, 2015.  The loan portfolio at September 30, 2016 was $886 million.  Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings.  Retail deposits totaled $670 million as of September 30, 2016, a $22 million or 3% increase from $648 million at September 30, 2015. The weighted average cost of funds for the third quarter of 2016 was 0.69% versus 0.77% for the third quarter of 2015.

As of September 30, 2016, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations.  Core capital and risk-based capital ratios were 13.62% and 25.71%, respectively, at September 30, 2016 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.  In the third quarter, Malaga Financial paid a quarterly dividend for the 48th consecutive quarter.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 49th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS STRONG SECOND QUARTER EARNINGS

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

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

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

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

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

Malaga’s total assets increased to $994 million at June 30, 2016 compared to $990 million at June 30, 2015. The loan portfolio at June 30, 2016 was $888 million. Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $664 million as of June 30, 2016, a $16 million or 3% increase from $648 million at June 30, 2015. The weighted average cost of funds for the second quarter of 2016 was 0.70% versus 0.80% for the second quarter of 2015.

As of June 30, 2016, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.57% and 25.45%, respectively, at June 30, 2016 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.  In the second quarter, Malaga Financial paid a quarterly dividend for the 47th consecutive quarter.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the third consecutive year, Malaga Bank has been named in the top 25 healthiest banks in America. A more detailed breakdown of Malaga Bank’s A+ health score may be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

PALOS VERDES ESTATES, CALIF.—June 7, 2016— Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank, FSB, today reported that DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers, has just released the 2016 edition of its Top 200 Healthiest Banks in America. For the third consecutive year, Malaga Bank was in the top 25 from the list of over 6,100 banks across the U.S. Each year DepositAccounts.com evaluates the financial health of every federally insured bank in the United States – more than 6,100 total. Each institution is graded on a number of factors, including capitalization, deposit growth, and loan to reserve ratios, in order to determine a comprehensive health score, with DepositAccounts.com recognizing those institutions who have shown exceptional fiduciary responsibility in its 2016 edition of the Top 200 Healthiest Banks in America.

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com. 

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 48th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED FIRST QUARTER EARNINGS

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

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

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

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

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

Malaga’s total assets increased by 4% to $1.012 billion at March 31, 2016 compared to $973 million at March 31, 2015.  The loan portfolio at March 31, 2016 was $887 million, an increase of $14 million or 2% from March 31, 2015.  Malaga originates loans principally for its own portfolio and not for sale. 

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings.  Retail deposits totaled $682 million as of March 31, 2016, a $53 million or 9% increase from $628 million at March 31, 2015. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $91 million as of March 31, 2016, a $20 million or 18% decrease from $111 million at March 31, 2015.  The retail deposit growth was used to fund the increase in loans and the decrease in wholesale deposits. 

As of March 31, 2016, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations.  Core capital and risk-based capital ratios were 13.50% and 25.17%, respectively, at March 31, 2016, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.  

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors.  As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service.  The Bank’s web site is located at www.malagabank.com.

 Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 47th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 SNL Financials Top 100 Public Thrift for 2014. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS AND DIVIDENDS

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

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

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

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

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

Malaga’s total assets increased $37.1 million or 4% to $984 million at December 31, 2015. The loan portfolio at December 31, 2015 was $892 million, an increase of $16 million or 2% from December 31, 2014. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $665 million as of December 31, 2015, a $67 million or 11% increase from $598 million at December 31, 2014. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $92 million as of December 31, 2015, an $18 million or 17% decrease from $110 million at December 31, 2014. FHLB borrowings decreased $17 million or 16% from $105 million at December 31, 2014 to $88 million at December 31, 2015. The retail deposit growth was used to fund the increase in loans and the decrease in wholesale deposits and FHLB borrowings.

As of December 31, 2015, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.20% and 25.31%, respectively, at December 31, 2015, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 22.5 cents per share, payable in January 2016 and a special dividend of 10 cents per share payable in December 2015. The quarterly dividend reflected a 13% increase in the quarterly dividend amount in effect for the past four quarters.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 of SNL Financials Top 100 Public Thrift for 2014. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2015 CASH DIVIDEND AND 12.5% INCREASE IN FIRST QUARTER 2016 DIVIDEND

PALOS VERDES ESTATES, CA.- November 20, 2015- Malaga Financial Corporation (OTC Pink: MLGF) Malaga Financial Corporation announced today that its Board of Directors had declared a special cash dividend in the amount of 10 cents per share payable to shareholders of record at the close of business on December 18, 2015. The dividend will be paid on or about December 28, 2015. In addition, an increase in the quarterly dividend to 22.5 cents was declared payable to shareholders of record at the close of business on December 28, 2015 to be paid on or about January 4, 2016. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year end dividend in addition to an increase in the amount of our 44th consecutive quarterly dividend. This will result in total dividends paid in 2015 of 90 cents per share for a 4.15% annual yield based on a closing share price of $21.70 on November 19, 2015. This is the 4th consecutive year that we have declared a special year end dividend along with an increase in the quarterly dividend.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 of SNL Financials Top 100 Public Thrift for 2014. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS SOLID 3RD QUARTER EARNINGS

PALOS VERDES ESTATES, CA.- October 19, 2015- Malaga Financial Corporation (OTC Pink: MLGF) the parent company of Malaga Bank FSB, today reported that net income for the quarter ended September 30, 2015 was $2,829,000 ($0.47 basic and $0.46 fully diluted earnings per share), a decrease of $78,000 from income of $2,907,000 for the quarter ended June 30, 2015 and an increase of $1,000 from net income of $2,828,000 ($0.47 per share basic and fully diluted) for the quarter ended September 30, 2014. Net income for the nine months ended September 30, 2015 was $8,485,000 ($1.40 basic and $1.39 fully diluted earnings per share) as compared to $8,372,000 ($1.39 basic and fully diluted earnings per share) for the nine months ended September 30, 2014, a 1% increase. Net income for the first nine months of 2015 resulted in an annualized pre-tax return on average equity of 18.17%.

The Company did not have any delinquent loans or real estate owned at September 30, 2015. The Company’s allowance for loan losses was $3,007,000, or 0.34% of total loans, at September 30, 2015.

Net interest income totaled $7,513,000 in the third quarter of 2015, an increase of $68,000 or 1% from the third quarter of 2014. This increase resulted from an increase in average interest earning assets of $69 million offset by a decrease in the interest spread from 3.20% to 2.99%. The decrease in the interest spread was due to a 0.22% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.01%.

Operating expenses increased 6% in the third quarter of 2015, to $2,798,000 from $2,649,000 in the third quarter of 2014. Increased costs resulted primarily from decrease in capitalized compensation related costs due to decrease in loans originated.

Randy C. Bowers, President and CEO, remarked, "We are pleased to report continued execution of our business plan has resulted in solid earnings in the 3rd quarter of 2015. Asset quality is excellent and expenses are well controlled. Thanks to our staff for their efforts in achieving these results and to our shareholders for their continued support."

Malaga’s total assets increased by 5% to $980 million at September 30, 2015 compared to $937 million at September 30, 2014. The loan portfolio at September 30, 2015 was $894 million, an increase of $29 million or 3% from September 30, 2014. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $648 million as of September 30, 2015, a $58 million or 10% increase from $590 million at September 30, 2014. The continued retail deposit growth combined with earnings growth was used to reduce FHLB borrowings by $16 million, increase investments by $15 million and to fund loan growth of $29 million. The weighted average cost of funds for the third quarter of 2015 was 0.77% versus 0.78% for the third quarter of 2014.

As of September 30, 2015, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 13.15% and 24.44%, respectively, at September 30, 2015 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 44th consecutive quarter.

Mr. Bowers concluded, "Recently we were recognized as the South Bay’s Best Bank for 2015 by the Daily Breeze’s 24th Annual Readers’ Choice Awards. As often as Malaga Bank is recognized industry-wide, this award is particularly important to us because it represents the view of our community; the people and businesses we serve."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 of SNL Financials Top 100 Public Thrift for 2014. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 44th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CA.- September 11, 2015- Malaga Financial Corporation (OTC Pink: MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 20 cents per share to shareholders of record on September 25, 2015. The dividend will be paid out on or about October 2, 2015. Randy C. Bowers, President and CEO, remarked, “Our continued strong and stable financial performance has provided us the opportunity to reward our shareholders with our 45th consecutive quarterly dividend. This $.20 dividend represents a 3.64% annualized yield based on our most recent closing price of $22.00. We are also pleased to have been recognized for our financial strength with our 31st consecutive quarterly 5 star rating from Bauer Financial, Inc. We are privileged to have served the South Bay community for over 30 years and look forward to continuing to do so in the future.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It is ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2014. This will be the 6th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS AND SOLID GROWTH

Palos Verdes Estates, CA – July 13, 2015 – Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2015 was $2,907,000 ($0.48 per share basic and fully diluted), an increase of $158,000 from income of $2,749,000 for the quarter ended March 31, 2015 and an increase of $96,000 or 3% from net income of $2,811,000 ($0.46 per share basic and fully diluted) for the quarter ended June 30, 2014. Net income for the six months ended June 30, 2015 was $5,656,000 ($0.93 basic and fully diluted earnings per share) as compared to $5,544,000 ($0.92 basic and fully diluted earnings per share) for the six months ended June 30, 2014, a 2% increase. Net income for the first six months of 2015 resulted in an annualized pre-tax return on average equity of 18.33%.

The Company did not have any delinquent loans or real estate owned at June 30, 2015. The Company’s allowance for loan losses was $3,024,000, or 0.34% of total loans, at June 30, 2015.

Net interest income totaled $7,624,000 in the second quarter of 2015, an increase of $161,000 or 2% from the second quarter of 2014. This increase resulted from an increase in average interest earning assets of $73 million offset by a decrease in the interest spread from 3.27% to 3.09%. The decrease in the interest spread was due to a 0.19% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.01%.

Operating expenses decreased 1% in the second quarter of 2015, to $2,730,000 from $2,767,000 in the second quarter of 2014.

Randy C. Bowers, President and CEO, remarked, “We are pleased to report increased earnings and solid growth for the 2nd Quarter and 1st half of 2015. The operating environment for banks remains challenging however the dedicated efforts of our colleagues in executing our business plan continues to produce solid results. Asset quality is excellent and expenses are well controlled.”

Malaga’s total assets increased by 7% to $990 million at June 30, 2015 compared to $926 million at June 30, 2014. The loan portfolio at June 30, 2015 was $888 million, an increase of $33 million or 4% from June 30, 2014. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $648 million as of June 30, 2015, an $81 million or 14% increase from $567 million at June 30, 2014. The continued retail and wholesale deposit growth combined with earnings growth was used to reduce FHLB borrowings by $59 million and to fund loan growth of $33 million. The weighted average cost of funds for the second quarter of 2015 was 0.80% versus 0.81% for the second quarter of 2014.

As of June 30, 2015, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.20% and 23.65%, respectively, at June 30, 2015 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the second quarter, Malaga Financial paid a quarterly dividend for the 44th consecutive quarter.

Mr. Bowers concluded, “We were delighted to have celebrated our 30th anniversary in March and we look forward to continuing to support our community and its various organizations, rewarding our shareholders and providing a safe and friendly place to bank in the South Bay.”

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For the sixth consecutive year, Malaga Financial Corporation has been ranked among the top 3 of SNL Financials Top 100 Public Thrift for 2014. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 44th CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CA.- June 12, 2015- Malaga Financial Corporation (OTC Pink: MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 20 cents per share to shareholders of record on June 26, 2015. The dividend will be paid out on or about July 3, 2015. Randy C. Bowers, President and CEO, remarked, “It is always a pleasure to reward our shareholders for their loyalty and support and this is our 44th consecutive quarterly dividend. This $.20 dividend represents a 3.58% annualized yield based on our most recent closing price of $22.35. We are also pleased to have been recognized for our financial strength with our 30th consecutive quarterly 5 star rating from Bauer Financial, Inc. We are privileged to have served the South Bay community for 30 years and look forward to continuing to do so in the future.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It was recently ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2014. This will be the 6th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION RANKED AMONG THE TOP 3 THRIFTS IN THE U.S. FOR THE SIXTH CONSECUTIVE YEAR!

PALOS VERDES ESTATES, CA.- May 26, 2015- Malaga Financial Corporation (OTC Pink: MLGF), , the parent company of Malaga Bank FSB, today announced that for the sixth consecutive year it has been ranked among the top 3 of SNL Financials Top 100 Public Thrift rankings for 2014. SNL Financial rankings are based on six performance metrics — core return on average assets (ROAA); core return on average equity (ROAE); three-year compound annual growth rate in tangible book value per share; efficiency ratio; non-performing loans and net charge-offs — for the 12 month period ended December 31, 2014, which are used to determine the best overall performing public thrifts. Malaga Bank’s consistently strong performance continues to be recognized at the highest levels by a variety of industry participants.

“We are pleased to continue to be recognized by SNL Financial as one of the best performing thrifts in the U.S.,” commented Randy C. Bowers, President and CEO. “These accolades are a reflection of our 30 years serving the financial needs of our communities and set Malaga Bank apart as a sound, stable, local community bank. We are thankful to our loyal customers, our shareholders and Board of Directors, and to our employees for the parts they all play in our continued success.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. In its 30th year, Malaga Bank delivers 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 INCREASE IN FIRST QUARTER EARNINGS

PALOS VERDES ESTATES, CA.- April 22, 2015- Malaga Financial Corporation (OTCBB:MLGF) , the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2015 was $2,749,000 ($0.45 per share basic and fully diluted), an increase of $16,000 or 1% from net income of $2,733,000 ($0.46 per share basic and $0.45 fully diluted) for the quarter ended March 31, 2014. Net income in the first quarter resulted in a pre-tax return on average equity of 18%.

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2015. The Company’s allowance for loan losses was $2,948,000, or 0.34% of total loans, at March 31, 2015.

Net interest income totaled $7,424,000 in the first quarter of 2015, an increase of $51,000 or 1% from the first quarter of 2014. This increase resulted from an increase in average interest earning assets of $62,279,000, offset by a decrease in the interest spread from 3.30% to 3.10%. The decrease in the interest spread was due to a 0.22% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.02%.

Operating expenses increased 1% in the first quarter of 2015, to $2,819,000 from $2,788,000 in the first quarter of 2014. Increased costs were primarily related to compensation and general and administrative expenses offset by a decrease in professional service fees.

Randy C. Bowers, President and CEO, remarked, “In spite of a difficult operating environment for banks we are pleased to report a slight increase in earnings for the first quarter of 2015. The economic recovery remains weak and there is uncertain timing of increases in interest rates, however our core operations continue to produce strong earnings.”

Malaga’s total assets increased by 7% to $973 million at March 31, 2015 compared to $910 million at March 31, 2014. The loan portfolio at March 31, 2015 was $874 million, an increase of $30 million or 4% from March 31, 2014. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $628 million as of March 31, 2015, a $30 million or 5% increase from $598 million at March 31, 2014. The continued retail deposit growth was used to fund loan growth of $30 million. The weighted average cost of funds for the first three months of 2015 was 0.80% versus 0.82% for the first three months of 2014.

As of March 31, 2015, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.40% and 24.36%, respectively, at March 31, 2015 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 42nd consecutive quarter.

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Malaga Bank has been rated as the #1 healthiest bank in America by DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers. 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 BANK CELEBRATES 30 YEARS SERVING THE SOUTH BAY

On March 14, 1985, Malaga Bank opened its doors to the community of the Palos Verdes Peninsula. Malaga is the only local bank headquartered on the Peninsula, and has become the largest community bank based in the South Bay area. Malaga is proud to be celebrating its 30th year.

Starting with $3.2 million in capital from local investors, the bank has grown to almost 1 billion dollars in total assets. There are now five retail branch offices and a Real Estate Loan Center dedicated to serving the residents and businesses of the Palos Verdes Peninsula, San Pedro, Torrance, the beach cities, and surrounding communities.

Randy C. Bowers, President and CEO of Malaga, remarked, “Malaga Bank has recently been rated the #1 healthiest bank in America by DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers. And, for the 29th consecutive quarter, we have been designated a five-star rated bank, the highest rating available from BauerFinancial. We take pride in continuing to provide a strong and safe place to bank for our customers, shareholders and communities.”

Malaga Bank provides real estate loans throughout Southern California, including income investment property, construction, and home loans. We also provide both business and consumer loans as well. The Bank brings the same commitment to service in its lending operations, offering custom tailored loan programs to fit each borrower’s needs.

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

With the completion of thirty years of banking success, Malaga would like to thank its customers, business associates, community friends and shareholders for their loyalty and support.

MALAGA FINANCIAL CORPORATION ANNOUNCES 43rd CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.- March 13, 2015- Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 20 cents per share to shareholders of record on March 27, 2015. The dividend will be paid out on or about April 3, 2015. Randy C. Bowers, President and CEO, remarked, “Our continued strong earnings and capital level allow us to reward our shareholders with a 20 cent quarterly dividend which represents a 3.61% annualized yield based on our most recent closing price of $ 22.14. In addition, we are celebrating the 30th anniversary of the opening of Malaga Bank on March 14, 1985. We look forward to continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Malaga Bank has been rated as the #1 healthiest bank in America by DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS INCREASED EARNINGS IN 4TH QUARTER

PALOS VERDES ESTATES, CALIF.- January 23, 2015- Malaga Financial Corporation (OTCBB:MLGF) the parent company of Malaga Bank FSB, today reported that net income for the quarter ended December 31, 2014 was $2,839,000 ($0.48 basic and $0.47 fully diluted earnings per share), an increase of $59,000 or 2% from net income of $2,780,000 ($0.47 basic and fully diluted earnings per share) for the quarter ended December 31, 2013. Net income for the twelve months ended December 31, 2014 was $11,211,000 ($1.87 basic and $1.86 fully diluted earnings per share) as compared to $11,494,000 ($1.94 basic and $1.93 fully diluted earnings per share) for the twelve months ended December 31, 2013, a 2% decrease. Earnings for the twelve months ended December 31, 2014 resulted in a pre-tax return on average equity of 19.10%.

The Company did not have any delinquent loans or foreclosed real estate owned at December 31, 2014. The Company’s allowance for loan losses was $2,949,000, or 0.34% of total loans, at December 31, 2014.

For 2014, net interest income totaled $29,692,000, an increase of $49,000 or 0.2% from 2013. This increase reflected higher average interest-earning assets of $62 million, offset by decrease of 0.24% in the interest rate spread to 3.22%. The decrease in the interest rate spread is primarily attributable to a decrease in yield on average interest-earning assets of 0.38%, primarily from a decrease in loan portfolio yield. Partially offsetting this was a decrease of 0.14% in the average cost of funds. The decrease in the average cost of funds was due to a combination of a higher mix of lower cost overnight Federal Home Loan Bank (FHLB) borrowings and maturity and repricing of longer-term FHLB borrowings.

Operating expenses remained stable with an increase of $427,000 or 4% to $10,871,000 in 2014 from $10,444,000 in 2013. The increase is primarily in compensation related costs.

Randy C. Bowers, President and CEO, commented, “We are pleased to report a positive trend in earnings for the fourth quarter. As a result we declared a special yearend dividend for the third consecutive year. We appreciate the loyalty of our shareholders and are delighted to be able to enhance their return on investment.”

Malaga’s total assets increased $60.4 million or 7% to $947 million at December 31, 2014. The loan portfolio at December 31, 2014 was $876 million, an increase of $49 million or 6% from December 31, 2013. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $598 million as of December 31, 2014, a $24 million or 4% increase from $574 million at December 31, 2013. Wholesale deposits, comprised mainly of State of California certificates of deposit, totaled $111 million as of December 31, 2014, $50 million or 84% increase from $61 million at December 31, 2013. The retail and wholesale deposit growth was used to fund the increase in loans and decrease in FHLB borrowings. FHLB borrowings decreased $23 million or 18% from $128 million at December 31, 2013 to $105 million at December 31, 2014.

As of December 31, 2014, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.25% and 24.08%, respectively, at December 31, 2014, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

In the fourth quarter, the Company declared a quarterly cash dividend of 20 cents per share, payable in January 2015 and a special dividend of 10 cents per share payable in 2014. The quarterly dividend reflected a 14% increase in the quarterly dividend amount in effect for the past four quarters.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2014 CASH DIVIDEND AND 14%+ INCREASE IN FIRST QUARTER 2015 DIVIDEND

PALOS VERDES ESTATES, CALIF.- December 5, 2014- Malaga Financial Corporation (OTCBB:MLGF) Malaga Financial Corporation announced today that its Board of Directors had declared a special cash dividend in the amount of 10 cents per share payable to shareholders of record at the close of business on December 22, 2014. The dividend will be paid on or about December 29, 2014. In addition, an increase in the quarterly dividend to 20 cents was declared payable to shareholders of record at the close of business on December 29, 2014 to be paid on or about January 6, 2015. Randy C. Bowers, President and CEO, remarked, “We are pleased to reward our loyal shareholders with a special year end dividend in addition to an increase in the amount of our 42nd consecutive quarterly dividend. This will result in total dividends paid in 2014 of 80 cents per share for a 3.90% annual yield based on a closing share price of $20.50 on December 3, 2014. We look forward to celebrating our 30th anniversary of operations during the first quarter of 2015 and continuing to serve and support the South Bay community.”

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Malaga Bank has been rated as the #1 healthiest bank in America by DepositAccounts.com, the largest and most comprehensive online publication in the U.S. dedicated to banking/savings (deposits) information for consumers. 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 THIRD QUARTER 2014 NET INCOME OF $2.8 MILLION PRE-TAX ROE 19.20%

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

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

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

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

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

Malaga’s total assets increased by 7% to $937 million at September 30, 2014 compared to $872 million at September 30, 2013. The loan portfolio at September 30, 2014 was $865 million, an increase of $55 million or 7% from September 30, 2013. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Deposits totaled $699 million as of September 30, 2014, a $71 million or 11% increase from $628 million at September 30, 2013. FHLB borrowings totaled $105 million at September 30, 2014, a $13 million or 11% decrease from $118 million at September 30, 2013. The weighted average cost of funds for the third quarter of 2014 was 0.78% versus 0.91% for the third quarter of 2013. The decrease was due primarily to a higher mix of lower cost state funds and overnight Federal Home Loan Bank borrowings.

As of September 30, 2014, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.21% and 23.34%, respectively, at September 30, 2014 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the third quarter, Malaga Financial paid a quarterly dividend for the 40th consecutive quarter.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 41st CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It was recently ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2013. This will be the 5th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA BANK NAMED #1 HEALTHIEST BANK IN AMERICA

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

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. In its 30th year, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS SECOND QUARTER 2014 NET INCOME OF $2.8 MILLION PRE-TAX ROE 19.37%

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

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

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

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

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

Malaga’s total assets increased by 6% to $926 million at June 30, 2014 compared to $870 million at June 30, 2013. The loan portfolio at June 30, 2014 was $856 million, an increase of $51 million or 6% from June 30, 2013. Malaga originates loans principally for its own portfolio and not for sale.

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

As of June 30, 2014, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.17% and 20.87%, respectively, at June 30, 2014 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the second quarter, Malaga Financial paid a quarterly dividend for the 39th consecutive quarter.

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 40th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It was recently ranked in the top 3 in the United States among the 100 largest publicly traded thrifts by SNL Financial. The rankings were based on a variety of financial metrics for the year ending 12/31/2013. This will be the 5th consecutive year that Malaga Bank has been ranked among the top 3 performing institutions. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS FIRST QUARTER 2014 NET INCOME OF $2.7 MILLION PRE-TAX ROE 19.16%

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

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

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

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

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

Malaga's total assets increased by 8% to $910 million at March 31, 2014 compared to $843 million at March 31, 2013. The loan portfolio at March 31, 2014 was $844 million, an increase of $64 million or 8% from March 31, 2013. Malaga originates loans principally for its own portfolio and not for sale. Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $598 million as of March 31, 2014, a $35 million or 6% increase from $562 million at March 31, 2013. The continued retail deposit growth combined with earnings growth and increase in FHLB borrowings was used to fund loan growth of $64 million. The weighted average cost of funds for the first three months of 2014 was 0.82% versus 1.08% for the first three months of 2013. The decrease was due primarily to a higher mix of lower cost overnight Federal Home Loan Bank borrowings.

As of March 31, 2014, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 13.20% and 22.90%, respectively, at March 31, 2014 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 38th consecutive quarter.

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 39th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS CONSISTENT STRONG EARNINGS - REWARDS SHAREHOLDERS WITH SPECIAL YEAR-END DIVIDEND

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

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

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

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

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

Malaga’s total assets increased $35.8 million or 4% to $887 million at December 31, 2013. The loan portfolio at December 31, 2013 was $827 million, an increase of $44 million or 6% from December 31, 2012. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $574 million as of December 31, 2013, a $30 million or 5% increase from $544 million at December 31, 2012. The retail deposit growth was used primarily to fund the increase in loans. FHLB borrowings decreased $2 million or 2% from $130 million at December 31, 2012 to $128 million at December 31, 2013.

As of December 31, 2013, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.36% and 23.10%, respectively, at December 31, 2013, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2013 CASH DIVIDEND IN ADDITION TO INCREASED FIRST QUARTER 2014 DIVIDEND.

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS THIRD QUARTER 2013 NET INCOME OF $2.9 MILLION PRE-TAX ROE 21.48%

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

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

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

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

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

Malaga’s total assets increased 4% to $872 million at September 30, 2013 compared to $836 million at September 30, 2012. Fed Funds Sold increased $18 million as of September 30, 2013 due to an increase in on-balance sheet liquidity. The loan portfolio at September 30, 2013 was $810 million, an increase of $19 million or 2% from September 30, 2012. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $568 million as of September 30, 2013, a $49 million or 10% increase from $519 million at September 30, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $27 million or 19% from $145 million at September 30, 2012 to $118 million at September 30, 2013. The weighted average cost of funds for the third quarter of 2013 was 0.91% versus 1.25% for the third quarter 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of September 30, 2013, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.39% and 23.41%, respectively, at September 30, 2013 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over 28 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 38th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker Magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS SECOND QUARTER 2013 NET INCOME OF $3.1 MILLION PRE-TAX ROE 21.59%

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

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

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

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

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

Malaga's total assets increased 5% to $870 million at June 30, 2013 compared to $833 million at June 30, 2012. Fed Funds Sold increased $31 million as of June 30, 2013 due to an increase in on-balance sheet liquidity. The loan portfolio at June 30, 2013 was $805 million, an increase of $11 million or 1% from June 30, 2012. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $551 million as of June 30, 2013, a $42 million or 8% increase from $509 million at June 30, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $21 million or 14% from $155 million at June 30, 2012 to $134 million at June 30, 2013. The weighted average cost of funds for the second quarter of 2013 was 0.96% versus 1.27% for the second quarter 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of June 30, 2013, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 13.21% and 22.92%, respectively, at June 30, 2013 significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over 28 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 37th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked among the top 200 Community Banks in the United States as published in the May 2013 issue of American Banker Magazine. The rankings were based on average return on equity for the 3 year period ending December 31, 2012. Malaga was the top ranked institution located in California and was ranked #9 among the top 200 in the nation. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS FIRST QUARTER 2013 NET INCOME OF $2.7 MILLION PRE-TAX ROE 20.47%

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

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

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

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

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

Malaga’s total assets increased slightly to $843 million at March 31, 2013 compared to $833 million at March 31, 2012. The loan portfolio at March 31, 2013 was $780 million, a decrease of $19 million or 2% from March 31, 2012. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $562 million as of March 31, 2013, a $68 million or 14% increase from $494 million at March 31, 2012. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $67 million or 40% from $166 million at March 31, 2012 to $99 million at March 31, 2013. The weighted average cost of funds for the first three months of 2013 was 1.08% versus 1.35% for the first three months of 2012. The decrease was due primarily to lower interest rate environment and the change to lower cost deposits from higher cost FHLB borrowings.

As of March 31, 2013, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.38% and 22.92%, respectively, at March 31, 2013 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 35th consecutive quarter.

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over 28 years, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 35th CONSECUTIVE QUARTERLY CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 20% INCREASE IN QUARTERLY DIVIDEND

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

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

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

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

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

Malaga’s total assets increased $23.9 million or 3% to $851 million at December 31, 2012. The loan portfolio at December 31, 2012 was $783 million, a decrease of $12 million or 1% from December 31, 2011. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $544 million as of December 31, 2012, a $53 million or 11% increase from $491 million at December 31, 2011. The retail deposit growth was used primarily to increase on-balance sheet liquidity and to repay FHLB borrowings. FHLB borrowings decreased $39 million or 23% from $169 million at December 31, 2011 to $130 million at December 31, 2012.

As of December 31, 2012, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 13.05% and 22.82%, respectively, at December 31, 2012, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

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

Mr. Bowers concluded, "We are honored that earlier this year we were ranked #1 of the 100 largest publicly traded thrifts in the United States for the third consecutive year by SNL Financial and as one of the 349 safest banks in the United States by MSN.money using the complex Texas Ratio. In addition, for over ten years, Malaga Bank has consistently received premier Top 5-Star rating by one of the nation’s leading independent bank rating and research firms, BauerFinancial Inc. These recognitions are a direct result of the contributions of our dedicated staff and board of directors, in addition to our loyal shareholders and customers."

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 20% INCREASE IN QUARTERLY DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES SPECIAL YEAR END 2012 CASH DIVIDEND

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS 3RD QUARTER AND YEAR-TO-DATE-EARNINGS

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

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

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

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

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

Malaga’s total assets reached $836 million at September 30, 2012 compared to $821 million at September 30, 2011. The loan portfolio at September 30, 2012 was $791 million, an increase of $4 million from September 30, 2011. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $519 million as of September 30, 2012, a $31 million or 6% increase from $488 million at September 30, 2011. The retail deposit growth was used to repay FHLB borrowings, which decreased $25 million or 16% from $170 million at September 30, 2011 to $145 million at September 30, 2012. The weighted average cost of funds for the third quarter of 2012 was 1.25% versus 1.69% for the third quarter of 2011.

As of September 30, 2012, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.06% and 21.56%, respectively, at September 30, 2012, significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively.

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 33rd CONSECUTIVE QUARTERLY CASH DIVIDEND

Palos Verdes Estates, CA - October 1, 2012 - Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 12½ cents per share to shareholders of record on October 12, 2012. The dividend will be paid out on or about October 16, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 33rd consecutive quarterly dividend. This dividend results in a 2.78% annual yield based on a closing share price of $18.00 on September 28, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for three consecutive years by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


MALAGA BANK OPENS NEW TORRANCE-SKYPARK BRANCH

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

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

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

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

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

Malaga Bank, a subsidiary of Malaga Financial Corporation, is the largest community bank headquartered on the Palos Verdes Peninsula, now having six separate banking offices located in the South Bay area of Los Angeles. Since 1985 Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


MALAGA BANK RANKED IN TOP 5% OF NATION'S SAFEST BANKS

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

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

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

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

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. Since 1985 Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

Malaga's total assets reached $833 million at June 30, 2012 compared to $824 million at June 30, 2011. The loan portfolio at June 30, 2012 was $794 million, an increase of $13 million or 2% from June 30, 2011. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $509 million as of June 30, 2012, a $22 million or 5% increase from $487 million at June 30, 2011. The retail deposit growth was used to repay wholesale deposits and FHLB borrowings, which decreased $24 million or 10% from $232 million at June 30, 2011 to $208 million at June 30, 2012. The weighted average cost of funds for the second quarter of 2012 was 1.27% versus 1.80% for the second quarter of 2011.

As of June 30, 2012, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed "well-capitalized" under applicable regulations. Core capital and risk-based capital ratios were 12.87% and 20.95%, respectively, at June 30, 2012, significantly exceeding the minimum "well capitalized" requirements of 5% and 10% respectively.

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

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 32nd CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.-June 28, 2012- Malaga Financial Corporation (OTCBB:MLGF). The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 12½ cents per share to shareholders of record on July 16, 2012. The dividend will be paid out on or about July 20, 2012. Randy C. Bowers, President and CEO, remarked, "We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 32nd consecutive quarterly dividend. This dividend results in a 3.14% annual yield based on a closing share price of $15.91 on June 27, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community."

Malaga Bank, a subsidiary of MFC, is a full-service community bank headquartered on the Palos Verdes Peninsula with five offices located in the South Bay area of Los Angeles. It has been ranked the #1 performing thrift in the nation for the third consecutive year by SNL Financial. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank's web site is located at www.malagabank.com.

Contact:

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


MALAGA BANK WELCOMES MARK SMITH AS SENIOR VICE PRESIDENT/ BUSINESS BANKING

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

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

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

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

Contact:

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


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

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

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

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

Contact:

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


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

Palos Verdes Estates, CA – May 22, 2012 – Malaga Financial Corporation (OTCBB:MLGF), ), the parent company of Malaga Bank FSB, today announced it has been ranked the top-performing thrift in the United States for the most recent 12-month period ending December 31, 2011 for the third consecutive year. SNL Financial ranked the 100 largest publicly traded thrifts according to six performance metrics, with standard deviations weighted and added together to calculate a performance score for each company. The higher the score, the better the final ranking with Malaga coming out #1 in the nation. For example, according to the six metrics — return on average assets (ROAA); return on average tangible common equity (ROATCE); median three-year growth rate in tangible book value per share; efficiency ratio; non-performing loans and net charge-offs to average loans — Malaga received a score of 144.60 which surpassed the #2 ranking thrift — coming in at 134.61— by 10 points!

“We are delighted to be recognized by SNL Financial as the top performing thrift in the nation for the third year in a row. We are thankful to our loyal customers, our shareholders and Board of Directors, and to our employees for their respective contributions to our success,” commented Randy C. Bowers, President and CEO.

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

Contact:

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


MALAGA FINANCIAL CORPORATION REPORTS 13% INCREASE IN FIRST QUARTER EARNINGS PRE-TAX ROE 25.35%

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

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

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

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

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

Malaga’s total assets increased slightly to $833 million at March 31, 2012 compared to $817 million at March 31, 2011. The loan portfolio at March 31, 2012 was $799 million, an increase of $23 million or 3% from March 31, 2011. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $494 million as of March 31, 2012, a $16 million or 3% increase from $478 million at March 31, 2011. The continued retail deposit growth was used to repay FHLB borrowings, which decreased $12 million or 7% from $178 million at March 31, 2011 to $166 million at March 31, 2012. The weighted average cost of funds for the first three months of 2012 was 1.35% versus 1.86% for the first three months of 2011. The decrease was due primarily to lower weighted average interest rates paid on retail deposits (which decreased 0.16%) and on Federal Home Loan Bank borrowings (which decreased 1.43%).

As of March 31, 2012, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 12.58% and 20.69%, respectively, at March 31, 2012 significantly exceeding the minimum “well capitalized” requirements of 5% and 10% respectively. In the first quarter, Malaga Financial paid a quarterly dividend for the 30th consecutive quarter.

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 31st CONSECUTIVE QUARTERLY CASH DIVIDEND

PALOS VERDES ESTATES, CALIF.- March 30, 2012 - Malaga Financial Corporation (OTCBB:MLGF).The Board of Directors of Malaga Financial Corporation announced today the declaration of a cash dividend in the amount of 12½ cents per share to shareholders of record on Apr. 13, 2012. The dividend will be paid out on or about Apr. 17, 2012. Randy C. Bowers, President and CEO, remarked, “We are pleased that our continued strong financial performance allows us to reward our loyal shareholders with our 31st consecutive quarterly dividend. This dividend results in a 3.45% annual yield based on a closing share price of $14.50 on March 29, 2012. We recently celebrated our 27th anniversary and look forward to continuing to serve and support the South Bay community.”

Malaga Bank is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance and now in San Pedro. For 27 years, Malaga has been delivering not only competitive banking services to residents and businesses of the South Bay, but also real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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


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

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

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

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

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

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

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

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

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

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

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES 25% INCREASE IN DIVIDEND

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

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

Contact:

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


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

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

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

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

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

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

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

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

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

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

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

Contact:

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


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

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

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

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

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

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

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

Contact:

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

MALAGA FINANCIAL CORPORATION ANNOUNCES 29th CONSECUTIVE CASH DIVIDEND

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

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

Contact:

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


Malaga Bank announces sweepstakes that gives back to the community.

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

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

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

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

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

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

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

Contact:

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


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

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

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

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

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

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

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

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

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

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

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

Contact:

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


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

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

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES NEW CHAIRMAN OF THE BOARD

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

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

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

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

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

Contact:

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


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

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

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

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

Contact:

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


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

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

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

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

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

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

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

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

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

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES CASH DIVIDEND

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

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

Contact:

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


MALAGA FINANCIAL CORPORATION ANNOUNCES SHARE REPURCHASES UNDER ITS STOCK REPURCHASE PROGRAM

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

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

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

MALAGA FINANCIAL CORPORATION REPORTS RECORD EARNINGS FOR 5TH CONSECUTIVE YEAR

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

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

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

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

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

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

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

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

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

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

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

Contact:

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