Malaga Financial Corporation Reports Second Quarter 2013 Net Income Of $3.1 Million
Malaga Financial Corporation (OTCBB:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended June 30, 2013 was $3,064,000 ($0.51 per share basic and fully diluted), a decrease of $53,000 or 2% from net income of $3,117,000 ($0.52 per share basic and fully diluted) for the quarter ended June 30, 2012. Net income for the six months ended June 30, 2013 was $5,768,000 ($0.97 basic and fully diluted earnings per share) as compared to $6,171,000 ($1.04 basic and fully diluted earnings per share) for the six months ended June 30, 2012, a 7% decrease. Net income decreased primarily due to a decrease in net interest income and an increase in the provision for loan losses due to increase in total loans outstanding. Net income for the first six months of 2013 resulted in an annualized pre-tax return on average equity of 21.59%.
The Company did not have any delinquent loans or real estate owned at June 30, 2013. The provision for loan losses increased $84,000 in the second quarter 2013 as compared to second quarter 2012, due to an increase in total loans outstanding. The Company’s allowance for loan losses was $2,831,000, or 0.35% of total loans, at June 30, 2013.
Net interest income totaled $7,643,000 in the second quarter of 2013, a decrease of $88,000 or 1% from the second quarter of 2012. This decrease resulted from a decrease in the interest spread from 3.71% to 3.60%, partially offset by an increase of $19 million or 2% in average interest earning assets to $827 million. The decrease in the interest spread was due to a 0.42% decline in the weighted average yield on interest earning assets, while the weighted average rate on interest-bearing liabilities declined only 0.31%.
Operating expenses decreased 3% in the second quarter of 2013, to $2,508,000 from $2,577,000 in the second quarter of 2012. Decreased costs resulted primarily from an increase in capitalized compensation related costs due to an increase in loans originated.
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