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

PALOS VERDES ESTATES, Calif., July 16, 2025 (GLOBE NEWSWIRE) -- 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 ...