Business
Malaga Financial Corporation Reports Increased Earnings for the First Six Months of 2022
Malaga Financial Corporation Reports Increased Earnings for the First Six Months of 2022.
About this update from Malaga Financial Corp.
[{"type":"text","content":"\n PALOS VERDES ESTATES, Calif., July 15, 2022 (GLOBE NEWSWIRE) -- Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the six months ended June 30, 2022 was $9,774,000 ($1.20 basic and fully diluted earnings per share) compared to $9,622,000 ($1.19 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the same period ended June 30, 2021, an increase of $152,000 or 2%. Net income for the quarter ended June 30, 2022 was $4,979,000 ($0.61 basic and fully diluted earnings per share), an increase of $73,000 or 1% from net income of $4,906,000 ($0.61 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on October 25, 2021) for the quarter ended June 30, 2021, and an increase of $184,000 or 4% from net income of $4,795,000 ($0.59 basic and fully diluted earnings per share) for the quarter ended March 31, 2022. For the first six months of 2022, the Company’s annualized return on average equity was 11.34% and the annualized return on average assets was 1.31%. The increase in earnings of $73,000 for the second quarter of 2022 compared to second quarter of 2021 was primarily attributable to a $388,000 increase in net interest income after provision for loan losses, offset by a $285,000 increase in other operating expense, and a $31,000 increase in income tax expense. Net interest income totaled $10,120,000 in the second quarter of 2022, an increase of $328,000 or 3% from the same period in 2021. This resulted primarily due to an increase in excess interest-bearing assets over interest-bearing liabilities of $12.6 million, offset by a decrease in the interest rate spread from 2.87% to 2.70%. The decrease in the interest rate spread is primarily attributable to a decrease of 0.22% in yield on average interest-earning assets offset by a decrease of 0.05% in yield on average interest-bearing liabilities. Operating expenses increased 9% in the second quarter of 2022 to $3,316,000 from $3,031,000 in the second quarter of 2021.   The increase is primarily attributed to an increase in compensation of $189,000, office rent and utilities of $45,000, and general and administrative expenses of $37,000. The Company had no 30-day delinquent loans or loans w...