Business
Malaga Financial Corporation Reports Annual Earnings for 2024
Malaga Financial Corporation Reports Annual Earnings for 2024.
About this update from Malaga Financial Corp.
[{"type":"text","content":"\n PALOS VERDES ESTATES, Calif., Jan. 22, 2025 (GLOBE NEWSWIRE) -- 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 effect...