Business
Malaga Financial Corporation Reports 9% Increase in Earnings for the First Six Months of 2021
Malaga Financial Corporation Reports 9% Increase in Earnings for the First Six Months of 2021.
About this update from Malaga Financial Corp.
[{"type":"text","content":"\n PALOS VERDES ESTATES, Calif., July 15, 2021 (GLOBE NEWSWIRE) -- Malaga Financial Corporation (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2021 was $9,622,000 ($1.25 basic and fully diluted earnings per share) compared to $8,804,000 ($1.14 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the same period ended June 30, 2020, an increase of $818,000 or 9%. Net income for the quarter ended June 30, 2021 was $4,906,000 ($0.64 basic and fully diluted earnings per share), an increase of $286,000 or 6% from net income of $4,620,000 ($0.60 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2020) for the quarter ended June 30, 2020. Net income for the quarter ended June 30, 2021 was $4,906,000 ($0.64 basic and fully diluted earnings per share), an increase of $190,000 or 4% from net income of $4,716,000 ($0.61 basic and fully diluted earnings per share) for the quarter ended March 31, 2021. For the first six months of 2021, the Company’s annualized return on average equity was 12.04% and the annualized return on average assets was 1.43%. The increase in earnings of $190,000 for the second quarter of 2021 compared to first quarter of 2021 was primarily attributable to a $148,000 increase in net interest income after provision for loan losses, a $74,000 increase in other operating income, and a $101,000 decrease in other operating expenses, partially offset by a $133,000 increase in income tax expense. Net interest income totaled $9,792,000 in the second quarter of 2021, an increase of $424,000 or 5% from the same period in 2020. This resulted primarily due to an increase in excess interest-bearing assets over interest-bearing liabilities of $15.6 million, offset by a decrease in the interest rate spread from 2.90% to 2.87%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.25% in yield on average interest-earning assets offset by a decrease of 0.22% in yield on average interest-bearing liabilities. Other operating income increased 22% in the second quarter of 2021 to $262,000 from $214,000 in the second quarter of 2020. Income increased primarily due to timing of annual safe deposit box fees. Operating exp...