Malaga Financial Corporation Reports Record Earnings.

PALOS VERDES ESTATES, Calif: 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, 2023 was $17,198,000 ($2.01 basic and fully diluted earnings per share) compared to $15,379,000 ($1.80 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022) for the same period ended September 30, 2022, an increase of $1,819,000 or 12%. Net income for the quarter ended September 30, 2023, was $5,729,000 ($0.67 basic and fully diluted earnings per share), an increase of $124,000 or 2% from net income of $5,605,000 ($0.66 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022) for the quarter ended September 30, 2022. For the first nine months of 2023, the Company's annualized return on average equity was 12.16% and the annualized return on average assets was 1.51%.

Net interest income totaled $11,425,000 in the third quarter of 2023, an increase of $305,000 or 3% from the same period in 2022. This resulted primarily from an increase in excess interest-bearing assets over interest-bearing liabilities of $18.8 million offset by a decrease in the interest rate spread from 2.96% to 2.82%. The decrease in the interest rate spread is primarily attributable to an increase of 0.94% in yield on average interest-earning assets offset by an increase of 1.08% in yield on average interest-bearing liabilities.

Other operating income increased 2% in the third quarter of 2023 to $216,000 from $212,000 in the third quarter of 2022. Income increased primarily due to deposit related fees.

Operating expenses increased 8% in the third quarter of 2023 to $3,562,000 from $3,309,000 in the third quarter of 2022 primarily due to an 8% increase in compensation.

The Company had no delinquent loans or loans with deferred payments and no foreclosed real estate owned at September 30, 2023. The Company's allowance for loan losses was $3,937,000, or 0.31% of total loans, at September 30, 2023.

Randy C. Bowers, Chairman, President and CEO, commented, "As we continue to experience a...