Malaga Financial Corporation Reports 13% Increase In First Quarter Earnings - Pre-Tax ROE 25.35%
Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2012 was $3,054,000 ($0.52 per share basic and fully diluted), an increase of $342,000 or 13% from net income of $2,712,000 ($0.46 per share basic and fully diluted) for the quarter ended March 31, 2011. Net income increased primarily due to an increase in net interest income. Net income in the first quarter was the highest quarterly net income in the Company’s 27-year history and resulted in a pre-tax return on average equity of 25.35%.
The Company did not have any delinquent loans or real estate owned at March 31, 2012. The Company’s allowance for loan losses was $2,920,000, or 0.37% of total loans, at March 31, 2012.
Net interest income totaled $7,655,000 in the first quarter of 2012, up $488,000 or 7% from the first quarter of 2011. This increase resulted from a $9.1 million or 15% increase in net interest-earning assets over interest-bearing liabilities and increase in the interest spread from 3.38% to 3.61%. The increase in the interest spread was due to a 0.28% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined 0.51%.
Operating expenses decreased 3% in the first quarter of 2012, to $2,563,000 from $2,651,000 in the first quarter of 2011. Decreased costs resulted primarily from a $65,000 decrease in deposit insurance premiums.Randy C. Bowers, President and CEO, remarked, “We are pleased to report record quarterly earnings in spite of continued weakness in the economy. Our loan portfolio is performing exceptionally well and we continue to maintain tight control over expenses.” Malaga’s total assets increased slightly to $833 million at March 31, 2012 compared to $817 million at March 31, 2011. The loan portfolio at March 31, 2012 was $799 million, an increase of $23 million or 3% from March 31, 2011. 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 + 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