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PALOS VERDES ESTATES, California, October 15, 2021 (GLOBE NEWSWIRE) – Malaga Financial Company (OTCPink: MLGF), the parent company of Malaga Bank FSB, today announced that net income for the nine months ended September 30, 2021 was $ 14,639,000 ($ 1.90 basic and diluted earnings per share) compared to 13,592,000 $ 1.77 basic and fully diluted earnings per share, adjusted for the stock dividend declared on November 13, 2020) for the same period ended September 30, 2020, an increase of $ 1,047,000 or 8%. Net income for the quarter ended September 30, 2021 was $ 5,017,000 ($ 0.65 basic and diluted earnings per share), an increase of $ 229,000 or 5% over net income of 4,788 $ 000 ($ 0.63 basic and fully diluted earnings per share, adjusted for share dividend declared November 13, 2020) for the quarter ended September 30, 2020. Net earnings for the quarter ended September 30, 2021 was of $ 5,017,000 ($ 0.65 of basic and diluted earnings per share), an increase of $ 111,000 or 2% over net earnings of $ 4,906,000 ($ 0.64 of basic earnings and diluted per share) for the quarter ended June 30, 2021. For the first nine months of 2021, the annualized return on average equity of the Company was 12.09% and the annualized return on average assets was 1.43 %.
The increase in income of $ 111,000 for the third quarter of 2021 compared to the second quarter of 2021 is attributable to an increase of $ 255,000 in net interest income after allowance for loan losses, offset by a decrease of 56 $ 000 in other operating income, an increase of $ 39,000 in other operating income expenses and a $ 49,000 increase in income tax expense.
Net interest income totaled $ 10,051,000 in the third quarter of 2021, an increase of $ 382,000 or 4% over the same period in 2020. This is mainly due to an increase in excess assets. bearing interest on interest-bearing liabilities of $ 11.6 million, offset by a decrease in the interest rate spread from 2.94% to 2.84%. The decrease in the interest rate spread is mainly attributable to a 0.25% decrease in the return on average interest bearing assets offset by a 0.15% decrease in the return on average interest bearing liabilities.
Other operating income increased 15% in the third quarter of 2021 to $ 206,000 from $ 179,000 in the third quarter of 2020. Revenue increased primarily due to deposit fees.
Operating expenses increased slightly in the third quarter of 2021 to $ 3,070,000 from $ 3,064,000 in the third quarter of 2020.
The Company had no past due or deferred payment loans and no foreclosed real estate held as of September 30, 2021. The Company’s allowance for loan losses was $ 3,775,000, or 0.30% of the total. loans, as of September 30, 2021.
Randy C. Bowers, Chairman, President and Chief Executive Officer, said, “We are delighted to report record earnings for the quarter and first nine months of 2021. Through the continued execution of our business plan. business, profits are improving, the quality of assets remains excellent and expenses are well under control. The trends are positive and we are optimistic for the rest of this year and 2022. ”
The Company’s total assets increased by 11% to reach $ 1.429 billion as at September 30, 2021, compared to $ 1.283 billion as at September 30, 2020. The loan portfolio as at September 30, 2021 stood at $ 1.246 billion. , an increase of $ 58.9 million or 5% from September 30. 2020. The Company issues loans primarily for its own portfolio and not for sale.
The Company finances its assets with a combination of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $ 806.1 million as at September 30, 2021, an increase of $ 107.0 million from $ 699.1 million as at September 30, 2020. Wholesale deposits increased by $ 51.2 million of $ 110.6 million or 46%, from $ 110.6 million as at September 30, 2020 to $ 161.8 million as at September 30, 2021. Wholesale deposits consist primarily of certificates of deposit from the State of California of $ 60.0 million and $ 88.0 million in long-term negotiated certificates of deposit. FHLB borrowings decreased $ 25.0 million or 8%, from $ 295.0 million as at September 30, 2020 to $ 270.0 million as at September 30, 2021.
As of September 30, 2021, Malaga Bank was in compliance with all applicable regulatory capital requirements and was considered “well capitalized” under applicable regulations. The core capital and risk-based capital ratios were 12.43% and 22.01%, respectively, far exceeding the minimum “well capitalized” requirements of 5% and 10%, respectively.
Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank based on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. Malaga Bank has been awarded an A + financial health rating by DepositAccounts.com. A more detailed breakdown of Malaga Bank’s A + health score can be found in the health section of its dedicated page at www.depositaccounts.com/banks/malaga-bank-fsb.html#health. For over ten years, Malaga Bank has been regularly recommended by one of the country’s leading independent banking rating and research companies, Bauer Financial Inc. Malaga Bank has received Bauer’s first 5-star rating for the 55th consecutive quarter from June 2021. Since 1985, Malaga has provided competitive banking services to residents and businesses of South Bay, including tailor-made home loan products for consumers and investors. As the largest community bank in South Bay, Malaga prides itself on its continuing tradition of relationship banking and legendary customer service. The Bank’s website is located at www.malagabank.com.
Contact: Randy Bowers Chairman, President and CEO, Malaga Financial Corporation, [email protected]
Source: Malaga Financial Corp.