Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2011 was $2,712,000 ($0.46 per share basic and fully diluted), an increase of $272,000 or 11% from net income of $2,440,000 ($0.42 per share basic and fully diluted) for the quarter ended March 31, 2010. Net income increased primarily due to an increase in net interest income. Net income in the first quarter was the highest first quarter net income in the Company’s 26-year history.
The Company did not have any delinquent loans or real estate owned at March 31, 2011. The Company’s allowance for loan losses was $2,866,000 or 0.37% of total loans, at March 31, 2011.
Net interest income totaled $7,167,000 in the first quarter of 2011, up $525,000 or 8% from the first quarter of 2010. This increase resulted from a $10.4 million or 21% increase in net interest-earning assets over interest-bearing liabilities and increase in net interest spread from 3.15% to 3.38%. The increase in the interest rate spread was due to a 0.09% decline in the weighted average yield on interest earning assets, while the weighted average yield on interest-bearing liabilities declined 0.32%.
Operating expenses increased 2% in the first quarter of 2011, to $2,651,000, from $2,603,000 in the first quarter of 2010. Increased costs resulted primarily from a $44,000 increase in compensation expense.Randy C. Bowers, President and CEO, remarked, “We are pleased with our ongoing trend of increased quarterly earnings year over year. Our loan portfolio is performing exceptionally well and we continue to maintain tight control over expenses.” Malaga’s total assets declined slightly to $817 million at March 31, 2011 compared to $829 million at March 31, 2010. The loan portfolio at March 31, 2011 was $776 million, an increase of $8 million or 1% from March 31, 2010. Malaga originates loans principally for its own portfolio and not for sale.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV