PALOS VERDES ESTATES, Calif., April 16, 2026 (GLOBE NEWSWIRE) — Malaga Financial Corporation “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the quarter ended March 31, 2026 was $6,063,000 ($0.61 basic and fully diluted earnings per share), an increase of $659,000 or 12% from net income of $5,404,000 ($0.55 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 14, 2025) for the quarter ended March 31, 2025. For the first quarter of 2026, the Company’s annualized return on average equity was 10.77% and the annualized return on average assets was 1.69%, as compared to 10.16% and 1.55%, respectively, for the same period in 2025. Book value per share as of March 31, 2026 was $22.89.
The Company did not have any delinquent loans or foreclosed real estate owned at March 31, 2026. The Company’s allowance for credit losses was $3,785,000, or 0.31% of total loans, at March 31, 2026.
Net interest income totaled $11,859,000 in the first quarter of 2026, an increase of $730,000 or 7% from the first quarter of 2025. This increase is due to an overall increase in average-interest earning assets of $47.4 million and an increase of 0.07% in interest spread to 3.05%. The increase in interest spread is primarily attributable to a 0.14% increase in yield on average interest-earning assets, which includes a special Federal Home Loan Bank (FHLB) cash dividend of $264,000, offset by 0.07% increase in …