Malaga Financial Corp. (MLGF.OB) Posts Record Earnings for Q3 and Nine Months

QualityStocks would like to highlight Malaga Financial Corp. (OTCBB: MLGF). Malaga Bank, the company’s subsidiary, is a full-service community bank headquartered on the Palos Verdes Peninsula with branch offices located on the Peninsula, in Torrance, California, and now in San Pedro. For 25 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.

In the company’s news yesterday,

Malaga Financial Corp., parent company of Malaga Bank FSB, reported its financial results for the third quarter and nine months ended September 30, 2010.

Net income for the third quarter of 2010 was $2.70 million, or $0.47 basic and $0.46 fully diluted earnings per share, up 8 percent from net income of $2.50 million, or $0.44 basic and $0.43 fully diluted earnings per share, for the comparable quarter of 2009. Net income for the nine months ended September 30, 2010, increased 9 percent to $7.78 million, or $1.34 basic and $1.32 fully diluted earnings per share, as compared to $7.13 million, or $1.24 basic and $1.23 fully diluted earnings per share, for the nine months ended September 30, 2009.

Malaga attributes the increase in net income primarily to growth in interest earning assets and improvement in the interest rate spread. The company said its earnings for the third quarter and first nine months were the highest in the bank’s history.

“We are pleased to announce record earnings for the third quarter and nine months ended September 30, 2010. With no foreclosures, asset quality remains exceptional while expenses continue to be well controlled. We thank our employees for their contributions and our customers for their business and continued loyalty,” Randy C. Bowers, president and CEO, stated in the press release.

Third-quarter net interest income for 2010 totaled $6.98 million, up 5 percent from the third quarter of 2009, due to a 4-percent increase in average interest earning assets to $805 million, and a 0.05 percent increase in the interest rate spread to 3.35 percent.

Operating expenses for the third quarter increased 2 percent to $2.56 million compared to $2.50 million in the third quarter of 2009. The bank’s efficiency ratio (operating expenses to net interest margin plus other operating income) was 37 percent for the nine months ended September 30, 2010, as compared to 39 percent for the comparable nine months of 2009.

Malaga reported total assets of $821 million at September 30, 2010, compared to $796 million at September 30, 2009. The loan portfolio at September 30, 2010, was $763 million, up $3 million from September 30, 2009.

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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.