Business
Malaga Financial Corporation Reports Record Earnings Fourth Quarter and Year-to-Date 2022
Malaga Financial Corporation Reports Record Earnings Fourth Quarter and Year-to-Date 2022.
About this update from Malaga Financial Corp.
[{"type":"text","content":"\n PALOS VERDES ESTATES, Calif., Jan. 24, 2023 (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, 2022 was $21,352,000 ($2.50 basic and fully diluted earnings per share) compared to $19,602,000 ($2.30 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022) for the twelve months ended December 31, 2021, a 9% increase. Net income for the quarter ended December 31, 2022 was $5,973,000 ($0.70 basic and fully diluted earnings per share), an increase of $1,010,000 or 20% from net income of $4,963,000 for the quarter ended December 31, 2021 ($0.58 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2022). For the twelve months ended December 31, 2022, the Company’s annualized return on average equity was 12.15% and the annualized return on average assets was 1.43%, as compared to 12.04% and 1.41%, respectively, for the same period in 2021. The Company did not have any delinquent loans over 30 days or real estate owned at December 31, 2022. The Company’s allowance for loan losses was $3,829,000, or 0.31% of total loans, at December 31, 2022. For 2022, net interest income totaled $42,847,000, an increase of $3,295,000 or 8% from 2021. This increase reflected higher average interest-earning assets of $104.5 million and an increase of 0.01% in the interest rate spread to 2.85%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.06% offset by an increase in the average cost of funds of 0.05%. Provision for loan losses decreased $83,000 to $27,000 in 2022 from $110,000 in 2021. The decrease is primarily due to continued positive trends in multi-family vacancy factors and unemployment, and continued excellent credit quality of the Company’s loan portfolio despite the negative effects presented by the unprecedented pandemic and possibility of a recession. Other operating income increased 4% in 2022 to $905,000 from $868,000 in 2021. Income increased primarily due to deposit related fees. Operating expenses increased $903,000 or 7% to $13,381,000 in 2022 from $12,478,000 in 2021. The increase is...