Press Releases

Malaga Financial Corporation Announces 87th Consecutive Quarterly Cash Dividend

Fri, 13 Mar 2026 23:02:00 GMT

PALOS VERDES ESTATES, CALIF.—March 12, 2026— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on March 25, 2026. The dividend will be paid out on or about April 1, 2026. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.59% annualized yield based on our most recent closing price of $21.80. We are grateful for the efforts of our colleagues which has positioned us to declare this 87^th 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 73^rd consecutive quarter as of March 2026. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Annual Earnings for 2025

Sat, 31 Jan 2026 01:13:59 GMT

Palos Verdes Estates, CA – January 30, 2026 – Malaga Financial Corporation, “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2025 was $21,554,000 ($2.18 basic and fully diluted earnings per share) compared to $22,651,000 ($2.29 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2025) for the twelve months ended December 31, 2024, a 5% decrease. Net income for the quarter ended December 31, 2025, was $5,123,000 ($0.52 basic and fully diluted earnings per share), a decrease of $189,000 or 4% from net income of $5,312,000 for the quarter ended December 31, 2024 ($0.54 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2025). For the twelve months ended December 31, 2025, the Company’s annualized return on average equity was 9.92% and the annualized return on average assets was 1.53%, as compared to 11.08% and 1.58%, respectively, for the same period in 2024.

The Company did not have any delinquent loans over 30 days, or real estate owned at December 31, 2025. The Company’s allowance for credit losses was $3,811,000, or 0.31% of total loans, at December 31, 2025.

For 2025, net interest income totaled $44,292,000, a decrease of $21,000 from 2024. This decrease reflected lower average interest-earning assets of $22.5 million offset by an increase of 0.02% in the interest rate spread to 2.94%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.07% offset by an increase in the average cost of funds of 0.05%.

The Company recorded a credit loss expense of $35,000 in 2025 versus a credit loss recovery of $137,000 in 2024. The expense versus recovery for credit loss is primarily due to a net decrease in loans of $1.9 million offset by minor changes to qualitative factors in 2025 versus net decrease in loans of $30.1 million in 2024. There were no loan charge-offs in 2025 or 2024. The Company’s loan portfolio continues to exhibit excellent credit quality.

Other operating income, which consists primarily of deposit related fees, increased $16,000 from 2024 to 2025.

The Company recorded non-operating income of $89,000 in 2025 and $500,000 in 2024 related to Employment Retention Credit (ERC) net of tax. The Company qualified for the ERC based on the partial suspension of its business due to government orders related to the Covid-19 pandemic. The ERC is a credit against certain employment taxes for eligible employers based on certain wages paid after March 12, 2020, through September 30, 2021.

Operating expenses increased $865,000 or 6% to $14,816,000 in 2025 from $13,951,000 in 2024. The increase is primarily attributed to an increase in general and administrative expenses of $589,000, mainly due to deposit-related fraud.

Randy C. Bowers, Chairman, President and CEO, remarked, “In 2025 we continued to face a difficult operating environment with great uncertainty resulting in elevated volatility in the markets. Loan demand continued to be weak as potential borrowers anticipated further reductions in rates while competition for deposits was aggressive. Additionally, the banking industry experienced a significant increase in attempted fraud during the year. We are generally satisfied that in spite of these challenges we were able to report stable earnings for the full year with strong and increasing capital levels to support future growth. We wish to thank our colleagues for their contribution to our success and our shareholders for their loyalty and support.”

Malaga Bank’s total assets increased to $1.435 billion at December 31, 2025, compared to $1.413 billion at December 31, 2024, primarily due to an increase in cash and cash equivalents of $25.4 million, offset by a decrease of $1.9 million in loans and $1.5 million in other assets. The loan portfolio at December 31, 2025, was $1.237 billion, a decrease of $1.9 million from December 31, 2024. 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 $718.8 million as of December 31, 2025, a $13.3 million or 2% increase from $705.5 million at December 31, 2024. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $166.7 million of brokered long-term certificates of deposit at December 31, 2025. Brokered long-term certificates of deposit which are utilized to manage interest rate risk, decreased $8.6 million or 4% from $175.3 million at December 31, 2024. FHLB borrowings were $250.0 million as of December 31, 2025, a $5.0 million increase from $245.0 million at December 31, 2024.

As of December 31, 2025, 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 16.31% and 29.38%, respectively, at December 31, 2025, 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 2026, and a special stock dividend of 5% per share payable on December 31, 2025, to shareholders of record as of December 19, 2025.

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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 72^nd consecutive quarter as of December 2025. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces Special Year End 2025 Stock Dividend in Addition to First Quarter 2026 Cash Dividend

Mon, 17 Nov 2025 17:51:29 GMT

PALOS VERDES ESTATES, CALIF.—November 14, 2025— Malaga Financial Corporation (OTCIQ: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 31, 2025, to shareholders of record at the close of business on December 19, 2025. 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 19, 2025, to be paid on or about January 2, 2026. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 86^th consecutive quarterly dividend. This will result in total cash dividends paid in 2025 of $1.00 per share for a 4.55% annual yield based on a closing share price of $22.00 on November 13, 2025, in addition to the special stock dividend. This is the 14^th 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 71^st consecutive quarter as of June 2025. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Earnings for the First Nine Months of 2025

Thu, 09 Oct 2025 18:24:41 GMT

Palos Verdes Estates, CA – October 09, 2025 – Malaga Financial Corporation “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2025 was $16,431,000 ($1.74 basic and fully diluted earnings per share) compared to $17,339,000 ($1.84 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2024) for the same period ended September 30, 2024, a decrease of $908,000 or 5%. This decrease was in part a result of the one-time Employment Retention Credit (ERC) credit of $500,000 reported as non-operating income in 2024. Net income for the quarter ended September 30, 2025, was $5,481,000 ($0.58 basic and fully diluted earnings per share), a decrease of $67,000 or 1% from net income of $5,548,000 ($0.59 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2024) for the quarter ended September 30, 2024. For the first nine months of 2025, the Company’s annualized return on average equity was 10.15% and the annualized return on average assets was 1.57%.

Net interest income totaled $10,929,000 in the third quarter of 2025, a decrease of $115,000 or 1% from the same period in 2024. This resulted primarily from a decrease in the interest rate spread from 2.95% to 2.88%, offset partially by an increase in excess of interest-earning assets over interest-bearing liabilities of $18.2 million. The decrease in the interest rate spread is primarily attributable to an increase of 0.10% in rate paid on average interest-bearing liabilities offset by an increase of 0.03% in yield on average interest-earning assets.

Other operating income increased $1,000 in the third quarter of 2025 to $218,000 from $217,000 for the same period in 2024.

In the third quarter of 2025, the Company collected IRS refund of $930,000 related to the 2024 ERC and recorded $145,000 in related net interest income.

Operating expenses increased 1% in the third quarter of 2025 to $3,445,000 from $3,427,000 in the third quarter of 2024. The increase is primarily attributed to an increase in depreciation and amortization of $19,000 due to bank-wide replacement of computers.

The Company had no delinquent loans and no foreclosed real estate owned at September 30, 2025. The Company’s allowance for loan losses was $3,703,000, or 0.31% of total loans, at September 30, 2025.

Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report earnings for the first nine months of 2025 remain strong and stable, posting a modest decrease over the prior year, especially considering the rapidly changing operating environment and impact of the 2024 ERC credit in prior year earnings. Asset quality remains excellent, capital levels are strong, and expenses are well controlled. We anticipate the remainder of 2025 and 2026 will be challenging, however are reasonably optimistic regarding our ability to continue to achieve favorable results.”

The Company’s total assets increased by 2% to $1.428 billion at September 30, 2025, compared to $1.404 billion at September 30, 2024. The loan portfolio at September 30, 2025, was $1.212 billion, a decrease of $20.3 million or 2% from September 30, 2024. The Company originates loans principally for its own portfolio and not for sale.

The Company funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $723.5 million as of September 30, 2025, a $7.8 million decrease from $731.3 million at September 30, 2024. Wholesale deposits increased $36.8 million or 21% from $174.4 million at September 30, 2024, to $211.2 million at September 30, 2025. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $160.2 million of long-term brokered certificates of deposits. FHLB borrowings decreased $20.0 million or 8% from $260.0 million at September 30, 2024, to $240.0 million at September 30, 2025. The Company utilizes long-term certificates of deposit (retail and wholesale) and FHLB borrowings to manage interest rate risk.

As of September 30, 2025, 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 16.47% and 29.72%, respectively, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 71^st consecutive quarter as of June 2025. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 85th Consecutive Quarterly Cash Dividend

Fri, 12 Sep 2025 22:46:59 GMT

PALOS VERDES ESTATES, CALIF.—September 12, 2025— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on September 23, 2025. The dividend will be paid out on or about October 1, 2025. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.89% annualized yield based on our most recent closing price of $20.43. We are grateful for the efforts of our colleagues which has positioned us to declare this 85^th 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 71^st consecutive quarter as of June 2025. Since 1985, Malaga Bank has been delivering competitive consecutive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Earnings for the First Six Months of 2025

Wed, 16 Jul 2025 18:47:46 GMT

Palos Verdes Estates, CA – July 16, 2025 – Malaga Financial Corporation “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2025 was $10,950,000 ($1.16 basic and fully diluted earnings per share) compared to $11,791,000 ($1.25 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2024) for the same period ended June 30, 2024. The $841,000 decrease in net income was primarily due to a $475,000 (net of tax) impact related to the Employment Retention Credit (ERC) received in the prior year. Net income for the quarter ended June 30, 2025 was $5,546,000 ($0.59 basic and fully diluted earnings per share), a decrease of $233,000 or 4% from net income of $5,779,000 ($0.61 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2024) for the quarter ended June 30, 2024. For the first six months of 2025, the Company’s annualized return on average equity was 10.23% and the annualized return on average assets was 1.58%.

The decrease in earnings of $233,000 for the second quarter of 2025 compared to second quarter of 2024 was primarily attributed to a $191,000 decrease in net interest income, a $92,000 decrease in recovery for provision for loan losses and a $73,000 increase in nonoperating expense offset by a $96,000 decrease in income tax expense and a $25,000 decrease in other operating expense.

Net interest income totaled $11,016,000 in the second quarter of 2025, a decrease of $191,000 from the same period in 2024. This resulted primarily due to a decrease in average interest-earning assets of $60.0 million offset by an increase in the interest rate spread from 2.92% to 2.97%. The increase in the interest rate spread is primarily attributed to an increase of 0.09% in yield on average interest-earning assets offset by an increase of 0.04% in rate paid on average interest-bearing liabilities.

Decrease of $92,000 in recovery for provision for loan losses between the second quarter 2025 and the same period in 2024 is primarily due to lower decrease in net loans.

The nonoperating expense increase of $73,000 in the second quarter 2025 compared to the second quarter 2024, was primarily due to $51,000 in check fraud versus $22,000 in check fraud recovery for the same period in 2024.

Operating expenses decreased 1% in the second quarter of 2025 to $3,423,000 from $3,448,000 in the second quarter of 2024. The decrease is primarily attributed to a decrease in compensation of $73,000, offset by increases in general and administrative of $19,000, depreciation and amortization of $19,000, and data processing of $9,000.

The Company had no 30-day delinquent loans or loans with deferred payments and no foreclosed real estate owned at June 30, 2024. The Company’s allowance for credit losses was $3,678,000, or 0.30% of total loans, at June 30, 2025.

Randy C. Bowers, Chairman, President, and CEO, commented, “As noted in the prior quarter, in the second quarter 2025 we continued to experience volatility and increased uncertainty in both the economic and political environment. We are generally satisfied with our results for the period and note the year-over-year impact of the 2024 ERC credit. Credit quality remains excellent, and expenses are well controlled. In spite of a very challenging operating environment, we remain optimistic going forward and wish to again thank our colleagues for their efforts in achieving these results.”

Malaga Bank’s total assets decreased by 2% to $1.397 billion at June 30, 2025, compared to $1.425 billion at June 30, 2024. The loan portfolio at June 30, 2025, was $1.209 billion, a decrease of $26.9 million or 2% from June 30, 2024. 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 $718.5 million as of June 30, 2025, a $22.0 million decrease from $740.5 million at June 30, 2024. Wholesale deposits increased $31.9 million or 18% from $174.6 million at June 30, 2024, to $206.5 million at June 30, 2025. Wholesale deposits were primarily comprised of $155.5 million brokered long-term certificates of deposits and $51.0 million State of California certificates of deposits as of June 30, 2025. FHLB borrowings decreased $55.0 million or 20% from $280.0 million at June 30, 2024, to $225.0 million at June 30, 2025. The decrease in FHLB borrowings is an interest rate risk management strategy related to the decrease in net loan growth.

As of June 30, 2025, 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 16.57% and 28.92%, respectively, at June 30, 2025, 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 70thconsecutive quarter as of March 2025. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 84th Consecutive Quarterly Cash Dividend

Fri, 23 May 2025 18:23:48 GMT

PALOS VERDES ESTATES, CALIF.—May 23, 2025— 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 23, 2025. The dividend will be paid out on or about July 1, 2025. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.84% annualized yield based on our most recent closing price of $20.65. We are grateful for the efforts of our colleagues which has positioned us to declare this 84^th 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 70^th consecutive quarter as of March 2025. Since 1985, Malaga Bank has been delivering competitive consecutive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Strong First Quarter Earnings

Tue, 15 Apr 2025 19:05:00 GMT

Palos Verdes Estates, CA – April 15, 2025 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2025 was $5,404,000 ($0.57 basic and fully diluted earnings per share), a decrease of $608,000 or 10% from net income of $6,012,000 ($0.64 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 15, 2024) for the quarter ended March 31, 2024. For the first quarter of 2025, the Company’s annualized return on average equity was 10.16% and the annualized return on average assets was 1.55%, as compared to 12.06% and 1.64%, respectively, for the same period in 2024.

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2025. The Company’s allowance for credit losses was $3,730,000, or 0.30% of total loans, at March 31, 2025.

Net interest income totaled $11,129,000 in the first quarter of 2025, a decrease of $44,000 or 0.39% from the first quarter of 2024. This decrease is due to an overall decrease in average-interest earning assets of $76.4 million offset by an increase of 0.12% in the interest spread to 2.98%. The increase in interest spread is primarily attributable to a 0.12% increase in yield on average interest-earning assets as the average cost of funds was unchanged.

In the first quarter of 2025, the Company recorded $13,000 in expenses (net of tax) related to the Employment Retention Credit (ERC) versus $494,000 in income (net of tax) in the first quarter of 2024. The ERC is a credit against certain employment taxes for eligible employers based on certain wages paid after March 12, 2020, through September 30, 2021. The Company qualified for the ERC based on the partial suspension of our business due to government orders related to Covid-19 pandemic.

In the first quarter of 2025, operating expenses increased 3% to $3,692,000 from $3,581,000 in the first quarter of 2024. The increase is primarily attributed to increases in compensation of $55,000, and general and administrative expenses of $53,000.

Randy C. Bowers, Chairman, President and CEO, commented, “First quarter 2025 presented continued volatility with increasing uncertainty in both economic markets and the political environment. We are generally pleased with our results for the period and note the year-over-year impact of the 2024 ERC credit. Credit quality remains excellent, net interest spread has improved and expenses are well controlled. We anticipate the rest of the year to be challenging and are preparing to address changes as they become apparent. We appreciate the efforts of our colleagues and loyalty of our shareholders as we continue to adapt in this difficult environment.”

Malaga’s total assets decreased to $1.381 billion at March 31, 2025, compared to $1.456 billion at March 31, 2024. The loan portfolio at March 31, 2025, was $1.226 billion, a decrease of $37 million or 3% from March 31, 2024. 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 $714 million as of March 31, 2025, a $36 million decrease from $750 million at March 31, 2024. Much of this outflow was a result of depositors seeking higher returns in alternative investments. Wholesale deposits, comprised mainly of State of California certificates of deposit and longer-term brokered deposits, totaled $226 million as of March 31, 2025, a $57 million increase from $169 million at March 31, 2024. FHLB borrowings decreased $110 million or 35% from $310 million at March 31, 2024, to $200 million at March 31, 2025. Malaga Bank utilizes FHLB borrowings and longer-term wholesale deposits as a tool to manage interest rate risk associated with growth of the loan portfolio.

As of March 31, 2025, 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 16.21% and 28.63%, respectively, at March 31, 2025, 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 69thconsecutive quarter as of December 2024. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 83rd Consecutive Quarterly Cash Dividend

Mon, 17 Mar 2025 19:35:47 GMT

PALOS VERDES ESTATES, CALIF.—March 14, 2025— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on March 24, 2025. The dividend will be paid out on or about April 1, 2025. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.85% annualized yield based on our most recent closing price of $20.62. We are grateful for the efforts of our colleagues which has positioned us to declare this 83^rd 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 69^th consecutive quarter as of December 2024. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Annual Earnings for 2024

Thu, 23 Jan 2025 00:28:39 GMT

Palos Verdes Estates, CA – January 22, 2025 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2024 was $22,651,000 ($2.40 basic and fully diluted earnings per share) compared to $22,981,000 ($2.44 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2024) for the twelve months ended December 31, 2023, a 1% decrease. Net income for the quarter ended December 31, 2024, was $5,312,000 ($0.56 basic and fully diluted earnings per share), a decrease of $471,000 or 8% from net income of $5,783,000 for the quarter ended December 31, 2023 ($0.61 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2024). For the twelve months ended December 31, 2024, the Company’s annualized return on average equity was 11.08% and the annualized return on average assets was 1.58%, as compared to 12.08% and 1.52%, respectively, for the same period in 2023.

The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2024. The Company’s allowance for credit losses was $3,775,000, or 0.30% of total loans, at December 31, 2024.

For 2024, net interest income totaled $44,313,000, a decrease of $1,621,000 or 4% from 2023. This decrease reflected lower average interest-earning assets of $90.7 million offset by an increase of 0.01% in the interest rate spread to 2.92%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.36% offset by an increase in the average cost of funds of 0.35%.

The Company recorded a credit loss recovery of $137,000 in 2024 versus a credit loss expense of $73,000 in 2023. The recovery versus expense for credit loss is primarily due to a net decrease in loans of $30.3 million in 2024 versus net loan growth of $18.8 million in 2023. The Company’s loan portfolio continues to exhibit excellent credit quality.

Other operating income decreased 2% in 2024 to $949,000 from $972,000 in 2023. Income decreased primarily due to deposit-related fees.

The Company recorded non-operating income of $695,000 related to Employment Retention Credit (ERC) in 2024. The tax effects of the ERC increased tax expense by $195,000 with total net ERC income of $500,000 reported as non-operating income. The Company qualified for the ERC based on the partial suspension of its business due to government orders related to the Covid-19 pandemic. The ERC is a credit against certain employment taxes for eligible employers based on certain wages paid after March 12, 2020, through September 30, 2021.

Operating expenses decreased $256,000 or 2% to $13,951,000 in 2024 from $14,207,000 in 2023. The decrease is primarily attributed to decreases in general and administrative expenses of $168,000 and check fraud-related expenses of $88,000.

Randy C. Bowers, Chairman, President and CEO, remarked, “2024 was an extremely challenging year as we continued to deal with higher interest rates and inflationary pressure on expenses. Additionally, we encountered exceptionally weak loan demand and heightened competition for deposits from large banks, pushing the cost of funds higher. We offset our decrease in assets with stable net interest rate spread and decrease in operating expenses. We are pleased that in spite of these issues we were able to report strong annual earnings for the full year. We anticipate that the operating environment in 2025 will continue to be difficult with a high degree of uncertainty in a variety of areas. We are considering the various scenarios as we plan for 2025 and going forward.”

Malaga Bank’s total assets decreased to $1.413 billion at December 31, 2024, compared to $1.475 billion at December 31, 2023, and primarily due to a decrease in cash and cash equivalents of $34.1 million and a decrease of $30.1 million in the loan portfolio. The loan portfolio at December 31, 2024, was $1.239 billion, a decrease of $30.1 million from December 31, 2023. 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 $705.5 million as of December 31, 2024, a $59.4 million or 8% decrease from $764.9 million at December 31, 2023. This decrease was consistent with an industry-wide trend as depositors moved excess liquidity into alternate investments such as real estate, stock market, treasury securities and to pay down debt. Wholesale deposits, primarily brokered long-term certificates of deposit which are utilized to manage interest rate risk, increased $59.1 million or 35% from $167.2 million at December 31, 2023. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $175.3 million of brokered long-term certificates of deposit at December 31, 2024. FHLB borrowings were $245.0 million as of December 31, 2024, a $75.0 million decrease from $320.0 million at December 31, 2023.

As of December 31, 2024, 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 15.94% and 28.07%, respectively, at December 31, 2024, 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 2025, and a special stock dividend of 5% per share payable on December 31, 2024, to shareholders of record as of December 20, 2024.

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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 68thconsecutive quarter as of September 2024. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces Special Year End 2024 Stock Dividend in Addition to First Quarter 2025 Cash Dividend

Fri, 15 Nov 2024 19:03:25 GMT

PALOS VERDES ESTATES, CALIF.—November 15, 2024— 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 31, 2024, to shareholders of record at the close of business on December 20, 2024. 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 20, 2024, to be paid on or about January 2, 2025. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 82^nd consecutive quarterly dividend. This will result in total cash dividends paid in 2024 of $1.00 per share for a 4.39% annual yield based on a closing share price of $22.76 on November 14, 2024, in addition to the special stock dividend. This is the 13^th 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 67^th consecutive quarter as of June 2024. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Record Earnings

Tue, 15 Oct 2024 19:47:06 GMT

Palos Verdes Estates, CA – October 15, 2024 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2024 was $17,339,000 ($1.93 basic and fully diluted earnings per share) compared to $17,198,000 ($1.92 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the same period ended September 30, 2023, an increase of $141,000 or 1%. Net income for the quarter ended September 30, 2024, was $5,548,000 ($0.62 basic and fully diluted earnings per share), a decrease of $181,000 or 3% from net income of $5,729,000 ($0.64 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the quarter ended September 30, 2023. For the first nine months of 2024, the Company’s annualized return on average equity was 11.39% and the annualized return on average assets was 1.61%.

Net interest income totaled $11,044,000 in the third quarter of 2024, a decrease of $381,000 or 3% from the same period in 2023. This resulted primarily from a decrease in average interest-earning assets of $142.3 million offset by an increase in the interest rate spread from 2.82% to 2.95%. The increase in the interest rate spread is primarily attributable to an increase of 0.34% in yield on average interest-earning assets offset by an increase of 0.21% in yield on average interest-bearing liabilities.

Other operating income increased $1,000 in the third quarter of 2024 to $217,000 from $216,000 for the same period in 2023.

Operating expenses decreased 3% in the third quarter of 2024 to $3,427,000 from $3,535,000 in the third quarter of 2023. The decrease is primarily attributed to decreases in compensation of $66,000, and general and administrative expenses of $49,000.

The Company had two delinquent consumer loans collateralized by certificates of deposit which were fully paid off in early October 2024. The Company had no foreclosed real estate owned at September 30, 2024. The Company’s allowance for loan losses was $3,719,000, or 0.30% of total loans, at September 30, 2024.

Randy C. Bowers, Chairman, President and CEO, commented, “As we strive to adapt to an uncertain and rapidly changing operating environment, we are pleased to report earnings for the first nine months of 2024 remain strong and stable with a modest increase over the prior year. While earnings continue to improve, asset quality remains excellent, capital levels are strong, and expenses are well controlled. We anticipate the remainder of 2024 and 2025 will be challenging, however are reasonably optimistic regarding our ability to continue to achieve favorable results.”

The Company’s total assets decreased by 10% to $1.404 billion at September 30, 2024, compared to $1.554 billion at September 30, 2023. The loan portfolio at September 30, 2024, was $1.232 billion, a decrease of $50.2 million or 4% from September 30, 2023. The Company originates loans principally for its own portfolio and not for sale.

>The Company funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $731.3 million as of September 30, 2024, a $107.9 million decrease from $839.2 million at September 30, 2023. Wholesale deposits increased $14.8 million or 9% from $159.6 million at September 30, 2023, to $174.4 million at September 30, 2024. Wholesale deposits are primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $123.4 million of long-term brokered certificates of deposits. FHLB borrowings decreased $70.0 million or 21% from $330.0 million at September 30, 2023, to $260.0 million at September 30, 2024. The decrease in FHLB borrowings is an interest rate risk management strategy related to the decrease in net loan growth.

As of September 30, 2024, 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 15.59% and 27.11%, respectively, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 67^th consecutive quarter as of June 2024. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 81st Consecutive Quarterly Cash Dividend

Fri, 13 Sep 2024 18:53:00 GMT

PALOS VERDES ESTATES, CALIF.—September 13, 2024— 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 20, 2024. The dividend will be paid out on or about October 2, 2024. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.38% annualized yield based on our most recent closing price of $22.84. We are grateful for the efforts of our colleagues which has positioned us to declare this 81^st 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 67^th consecutive quarter as of June 2024. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Increased Earnings for the First Six Months of 2024

Mon, 15 Jul 2024 23:32:00 GMT

Palos Verdes Estates, CA – July 12, 2024 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2024 was $11,791,000 ($1.31 basic and fully diluted earnings per share) compared to $11,469,000 ($1.28 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the same period ended June 30, 2023, an increase of $322,000 or 3%. Net income for the quarter ended June 30, 2024 was $5,779,000 ($0.64 basic and fully diluted earnings per share), an increase of $185,000 or 3% from net income of $5,594,000 ($0.63 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the quarter ended June 30, 2023. For the first six months of 2024, the Company’s annualized return on average equity was 11.73% and the annualized return on average assets was 1.62%.

The increase in earnings of $185,000 for the second quarter of 2024 compared to second quarter of 2023 was primarily attributed to a $170,000 increase in net interest income after provision for loan losses, a $60,000 decrease in other operating expense, and a $43,000 decrease in nonoperating expense offset by a $77,000 increase in income tax expense and an $11,000 decrease in other operating income.

Net interest income totaled $11,207,000 in the second quarter of 2024, an increase of $2,000 from the same period in 2023. This resulted primarily due to a decrease in average interest-earning assets of $61.9 million offset by an increase in the interest rate spread from 2.87% to 2.92%. The increase in the interest rate spread is primarily attributed to an increase of 0.49% in yield on average interest-earning assets offset by an increase of 0.44% in yield on average interest-bearing liabilities.

Operating expenses decreased 2% in the second quarter of 2024 to $3,448,000 from $3,508,000 in the second quarter of 2023. The decrease is primarily attributed to decreases in deposit insurance premium of $73,000 and general and administrative of $28,000 offset by increases in data processing of $23,000 and compensation of $10,000.

The Company had no 30-day delinquent loans or loans with deferred payments and no foreclosed real estate owned at June 30, 2024. The Company’s allowance for credit losses was $3,737,000, or 0.30% of total loans, at June 30, 2024.

Randy C. Bowers, Chairman, President, and CEO, commented, “We are pleased to report continued year-over-year earnings increases for the 2^nd quarter and year-to-date 2024.This positive earnings trend along with excellent asset quality and tight expense control position us well for continued favorable performance for the remainder of the year. In spite of a very challenging operating environment, we are realistically optimistic going forward and wish to again thank our colleagues for their efforts in achieving these results.”

Malaga Bank’s total assets decreased by 8% to $1.425 billion at June 30, 2024, compared to $1.544 billion at June 30, 2023. The loan portfolio at June 30, 2024 was $1.236 billion, a decrease of $59.5 million or 5% from June 30, 2023. 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 $740.5 million as of June 30, 2024, a $90.2 million decrease from $830.7 million at June 30, 2023. Wholesale deposits increased $15.0 million or 9% from $159.6 million at June 30, 2023, to $174.6 million at June 30, 2024. Wholesale deposits were primarily comprised of $123.6 million brokered long-term certificates of deposits and $51.0 million State of California certificates of deposits as of June 30, 2024. FHLB borrowings decreased $55.0 million or 16% from $335.0 million at June 30, 2023, to $280.0 million at June 30, 2024. The decrease in FHLB borrowings is an interest rate risk management strategy related to the decrease in net loan growth.

As of June 30, 2024, 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 15.01% and 26.66%, respectively, at June 30, 2024, 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 66thconsecutive quarter as of March 2024. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 80th Consecutive Quarterly Cash Dividend

Wed, 29 May 2024 16:13:00 GMT

PALOS VERDES ESTATES, CALIF.—May 24, 2024— 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 21, 2024. The dividend will be paid out on or about July 2, 2024. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.43% annualized yield based on our most recent closing price of $22.56. We are grateful for the efforts of our colleagues which has positioned us to declare this 80^th 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 66^th consecutive quarter as of March 2024. Since 1985, Malaga Bank has been delivering competitive consecutive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Strong First Quarter Earnings

Mon, 15 Apr 2024 18:33:00 GMT

Palos Verdes Estates, CA – April 15, 2024 – Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2024 was $6,012,000 ($0.67 basic and fully diluted earnings per share), an increase of $137,000 or 2% from net income of $5,875,000 ($0.65 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the quarter ended March 31, 2023. For the first quarter of 2024, the Company’s annualized return on average equity was 12.06% and the annualized return on average assets was 1.64%, as compared to 12.70% and 1.57%, respectively, for the same period in 2023.

The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2024. The Company’s allowances for credit losses were $3,881,000, or 0.31% of total loans, at March 31, 2024.

Net interest income totaled $11,173,000 in the first quarter of 2024, a decrease of $600,000 or 5% from the first quarter of 2023. This decrease was due to a decrease of 0.19% in the interest rate spread to 2.86% offset partially by an increase in excess interest-earning assets over interest-bearing liabilities of $13.6 million. The decrease in the interest rate spread is primarily attributable to a 0.67% increase in the average cost of funds offset by an increase of 0.48% in the yield on average interest-earning assets.

The CARES Act provided for an Employee Retention Credit (ERC), which is a broad-based refundable payroll tax credit that incentivized businesses to retain employees on the payroll during the COVID-19 pandemic. The ERC is a credit against certain employment taxes for eligible employers based on certain wages paid after March 12, 2020, through September 30, 2021. The Company qualified for the ERC based on the partial suspension of our business due to government orders related to Covid-19 pandemic. In the first quarter of 2024, the Company recorded non-operating income of $712,000 related to ERC for the second quarter 2020 through the first quarter 2021. The tax effects of the ERC increased tax expense by $218,000 with total net ERC income of $494,000 reported as non-operating income.

In the first quarter of 2024, operating expenses increased 2% to $3,540,000 from $3,487,000 in the first quarter of 2023. The increase is primarily attributed to increases in deposit insurance premiums of $61,000, data processing of $15,000, and office rent and utilities of $10,000 offset by decreases in general and administrative expenses of $28,000 and depreciation and amortization of $10,000.

Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report strong earnings for the first quarter of 2024. The operating environment has been challenging with continued pressure on the net interest margin and the impact of inflation on expenses. There is considerable uncertainty with regards to interest rates and the economy for the remainder of the year, in addition to the various other issues we must consider as we plan for the future. We are anticipating the effect of a variety of potential scenarios to be better prepared to adapt as appropriate and are cautiously optimistic about the remainder of the year.”

Malaga’s total assets decreased to $1.456 billion at March 31, 2024, compared to $1.499 billion at March 31, 2023. The loan portfolio at March 31, 2024 was $1.263 billion, a decrease of $25 million or 2% from March 31, 2023. 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 $750 million as of March 31, 2024, a $40 million decrease from $790 million at March 31, 2023. Much of this outflow was a result of depositors seeking higher returns in alternative investments. Wholesale deposits, comprised mainly of State of California certificates of deposit and brokered deposits, totaled $169 million as of March 31, 2024, a $9 million increase from $160 million at March 31, 2023. FHLB borrowings decreased $25 million or 7% from $335 million at March 31, 2023, to $310 million at March 31, 2024. Malaga Bank utilizes FHLB borrowings and longer-term wholesale deposits as a tool to manage interest rate risk associated with growth of the loan portfolio.

As of March 31, 2024, 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 14.51% and 25.61%, respectively, at March 31, 2024, 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 65thconsecutive quarter as of December 2023. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 79th Consecutive Quarterly Cash Dividend

Fri, 15 Mar 2024 18:32:00 GMT

PALOS VERDES ESTATES, CALIF.—March 15, 2024— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on March 26, 2024. The dividend will be paid out on or about April 2, 2024. Randy C. Bowers, Chairman, President and CEO, remarked, “We are pleased to reward our loyal shareholders with this 25-cent quarterly dividend which represents a 4.39% annualized yield based on our most recent closing price of $22.80. We are grateful for the efforts of our colleagues which has positioned us to declare this 79^th 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 over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 65^th consecutive quarter as of December 2023. Since 1985, Malaga Bank has been delivering competitive consecutive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Reports Record Annual Earnings in 2023

Tue, 23 Jan 2024 23:00:00 GMT

Palos Verdes Estates, CA – January 23, 2024 – Malaga Financial Corporation, “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2023 was $22,981,000 ($2.56 basic and fully diluted earnings per share) compared to $21,352,000 ($2.38 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the twelve months ended December 31, 2022, an 8% increase. Net income for the quarter ended December 31, 2023, was $5,783,000 ($0.64 basic and fully diluted earnings per share), a decrease of $190,000 or 3% from net income of $5,973,000 for the quarter ended December 31, 2022 ($0.67 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023). For the twelve months ended December 31, 2023, the Company’s annualized return on average equity was 12.08% and the annualized return on average assets was 1.52%, as compared to 12.15% and 1.43%, respectively, for the same period in 2022.

The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2023. The Company’s allowance for credit losses was $3,908,000, or 0.31% of total loans, at December 31, 2023.

For 2023, net interest income totaled $45,934,000, an increase of $3,087,000 or 7% from 2022. This increase reflected higher average interest-earning assets of $23.3 million and an increase of 0.06% in the interest rate spread to 2.91%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.95% offset by an increase in the average cost of funds of 0.89%. The overall increase in yields is due to a continued increase in interest rates for most of 2023.

Provision for loan losses increased $46,000 to $73,000 in 2023 from $27,000 in 2022. The increase is primarily due to an increase in net loan growth of $18.7 million for 2023 versus $5.1 million for 2022. The Company’s loan portfolio continues to exhibit excellent credit quality.

Other operating income increased 7% in 2023 to $972,000 from $905,000 in 2022. Income increased primarily due to deposit related fees.

Operating expenses increased $826,000 or 6% to $14,207,000 in 2023 from $13,381,000 in 2022. The increase is primarily attributed to increases in compensation of $446,000, deposit insurance premium of $268,000, and office rent and utilities of $96,000.

Randy C. Bowers, Chairman, President and CEO, remarked, “2023 was an extremely challenging year as we continued to deal with increasing interest rates and inflationary pressure on expenses. Additionally, we encountered exceptionally weak loan demand and heightened competition for deposits from large banks, pushing the cost of funds higher. We are pleased that in spite of these issues we were able to report record annual earnings for the full year. We anticipate that the operating environment in 2024 will continue to be difficult with a high degree of uncertainty in a variety of areas. We are considering the various scenarios as we plan for 2024 and going forward.”

Malaga Bank’s total assets decreased to $1.475 billion at December 31, 2023, compared to $1.509 billion at December 31, 2022 and is primarily a result of outflow of excess liquidity caused by decrease in deposits. The loan portfolio at December 31, 2023 was $1.269 billion, an increase of $18.7 million from December 31, 2022. 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 $764.9 million as of December 31, 2023, a $85.3 million or 10% decrease from $850.2 million at December 31, 2022. This decrease was consistent with an industry-wide trend as depositors moved excess liquidity into alternate investments such as real estate, stock market, treasury securities and to pay down debt. Wholesale deposits increased $7.6 million or 5% from $159.6 million at December 31, 2022. Wholesale deposits were primarily comprised of State of California certificates of deposit in the amount of $51.0 million and $116.2 million of brokered long-term certificates of deposit at December 31, 2023. FHLB borrowings were $320.0 million as of December 31, 2023, a $30.0 million increase from $290.0 million at December 31, 2022.

As of December 31, 2023, 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 13.76% and 26.39%, respectively, at December 31, 2023, 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 2024, and a special stock dividend of 5% per share payable on December 29, 2023, to shareholders of record as of December 15, 2023.

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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 64thconsecutive quarter as of September 2023. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces Special Year End 2023 Stock Dividend in Addition to First Quarter 2024 Cash Dividend

Fri, 10 Nov 2023 11:06:00 GMT

PALOS VERDES ESTATES, CALIF.—November 10, 2023— 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, 2023, to shareholders of record at the close of business on December 15, 2023. 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, 2023, to be paid on or about January 3, 2024. Randy C. Bowers, President and CEO, remarked, “We are pleased to declare a special year-end stock dividend in addition to our 78^th consecutive quarterly dividend. This will result in total cash dividends paid in 2023 of $1.00 per share for a 4.26% annual yield based on a closing share price of $23.50 on November 9, 2023, in addition to the special stock dividend. This is the 12^th 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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 63^rd consecutive quarter as of June 2023. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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

Malaga Financial Corporation Announces 77th Consecutive Quarterly Cash Dividend

Wed, 08 Nov 2023 19:46:00 GMT

PALOS VERDES ESTATES, CALIF.—September 8, 2023— Malaga Financial Corporation (OTCPink:MLGF) announced today the declaration of a cash dividend in the amount of 25 cents per share to shareholders of record on September 22, 2023. This dividend represents a 4.30% annualized yield based on our most recent closing price of $23.24. The dividend will be paid out on or about October 2, 2023. Randy C. Bowers, Chairman, President and CEO, remarked, “In 2023 we have continued to experience the interest rate increases necessary to fight inflation and resulting difficult financial environment that began in 2022. We are pleased that our strong earnings and balance sheet have positioned us to declare this 25-cent quarterly dividend and reward our shareholders for their investment. Our thanks also to our dedicated colleagues for their efforts in achieving these results.”

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 fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 63^rd consecutive quarter as of June 2023. Since 1985, Malaga Bank has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.

Contact:

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