PALOS VERDES ESTATES, Calif., Jan. 30, 2026 (GLOBE NEWSWIRE) — Malaga Financial Corporation, “Company” (OTCIQ:MLGF), the parent company of Malaga Bank FSB, today reported that net income for the twelve months ended December 31, 2025 was $21,554,000 ($2.18 basic and fully diluted earnings per share) compared to $22,651,000 ($2.29 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2025) for the twelve months ended December 31, 2024, a 5% decrease. Net income for the quarter ended December 31, 2025, was $5,123,000 ($0.52 basic and fully diluted earnings per share), a decrease of $189,000 or 4% from net income of $5,312,000 for the quarter ended December 31, 2024 ($0.54 basic and fully diluted earnings per share, as adjusted for the stock dividend declared on November 13, 2025). For the twelve months ended December 31, 2025, the Company’s annualized return on average equity was 9.92% and the annualized return on average assets was 1.53%, as compared to 11.08% and 1.58%, respectively, for the same period in 2024.
The Company did not have any delinquent loans over 30 days, or real estate owned at December 31, 2025. The Company’s allowance for credit losses was $3,811,000, or 0.31% of total loans, at December 31, 2025.
For 2025, net interest income totaled $44,292,000, a decrease of $21,000 from 2024. This decrease reflected lower average interest-earning assets of $22.5 million offset by an increase of 0.02% in the interest rate spread to 2.94%. The increase in the interest rate spread is primarily attributable to an increase in the yield on average interest-earning assets of 0.07% offset by an increase in the average cost of funds of 0.05%.
The Company recorded a credit loss expense of $35,000 in 2025 versus a credit loss recovery of $137,000 in 2024. The expense versus recovery for credit loss is primarily due to a net decrease in loans of $1.9 million offset by minor changes …