Malaga Financial Corporation Reports Record 2nd Quarter And Year-to-Date Earnings
Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2012 was $3,117,000 ($0.52 basic and fully diluted earnings per share), an increase of $369,000 or 13% from net income of $2,748,000 ($0.47 basic and $0.46 fully diluted earnings per share) for the quarter ended June 30, 2011. Net income for the six months ended June 30, 2012 was $6,171,000 ($1.04 basic and fully diluted earnings per share) as compared to $5,460,000 ($0.93 basic and $0.92 fully diluted earnings per share) for the six months ended June 30, 2011, a 13% increase. Earnings for the second quarter and first six months were the highest in Malaga Financial’s history for those periods and resulted in an annualized pre-tax return on average equity of 25.26%.
At June 30, 2012, the Company reported one delinquent loan and no real estate owned. The delinquent loan is a single family loan with an outstanding principal balance of $2.7 million and was one payment delinquent. The Company’s allowance for loan losses was $2,920,000, or 0.37% of total loans, at June 30, 2012.
Net interest income totaled $7,731,000 in the second quarter of 2012, up $606,000 or 9% from the second quarter of 2011. This increase resulted from a $7 million or 1% increase in average interest earning assets to $809 million, and an increase of 0.29% in the interest rate spread to 3.71%. The increase in the interest rate spread was due to a decline in the weighted average cost of funds of 0.53%, which exceeded the 0.24% decline in the weighted average yield on interest earning assets.
Operating expenses remained stable with a small decrease of less than 1% in the second quarter of 2012, to $2,577,000 from $2,583,000 in the second quarter of 2011.
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