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PALOS VERDES ESTATES, Calif., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Malaga Financial Corporation “Company” (OTCPink:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the nine months ended September 30, 2024 was $17,339,000 ($1.93 basic and fully diluted earnings per share) compared to $17,198,000 ($1.92 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the same period ended September 30, 2023, an increase of $141,000 or 1%. Net income for the quarter ended September 30, 2024, was $5,548,000 ($0.62 basic and fully diluted earnings per share), a decrease of $181,000 or 3% from net income of $5,729,000 ($0.64 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 9, 2023) for the quarter ended September 30, 2023. For the first nine months of 2024, the Company’s annualized return on average equity was 11.39% and the annualized return on average assets was 1.61%.
Net interest income totaled $11,044,000 in the third quarter of 2024, a decrease of $381,000 or 3% from the same period in 2023. This resulted primarily from a decrease in average interest-earning assets of $142.3 million offset by an increase in the interest rate spread from 2.82% to 2.95%. The increase in the interest rate spread is primarily attributable to an increase of 0.34% in yield on average interest-earning assets offset by an increase of 0.21% in yield on average interest-bearing liabilities.
Other operating income increased $1,000 in the third quarter of 2024 to $217,000 from $216,000 for the same period in 2023.
Operating expenses decreased 3% in the third quarter of 2024 to $3,427,000 from $3,535,000 in the third quarter of 2023. The decrease is primarily attributed to decreases in compensation of $66,000, and general and administrative expenses of $49,000.
The Company had two delinquent consumer loans collateralized by certificates of deposit which were fully paid off in early October 2024. The Company had no foreclosed real estate owned at September 30, 2024. The Company’s allowance for loan losses was $3,719,000, or 0.30% of total loans, at September 30, 2024.
Randy C. Bowers, Chairman, President and CEO, commented, “As we strive to adapt to an uncertain and rapidly changing operating environment, we are pleased to report earnings for the first nine months of 2024 remain strong and stable with a modest increase over the prior year. While earnings continue to improve, asset quality remains excellent, capital levels are strong, and expenses are well controlled. We anticipate the remainder of 2024 and 2025 will be challenging, however are reasonably optimistic regarding our ability to continue to achieve favorable results.”