Malaga Financial Corporation Reports Increased Earnings for the First Six Months of 2023 - Seite 2

Randy C. Bowers, Chairman, President and CEO, commented, “We are pleased to report continued year over year earnings increases for the 2^nd quarter and year to date 2023. The 17% increase in profitability for the first 6 months of the year is a result of strategic management of our balance sheet and focused expense control. Credit quality remains excellent, and we were delighted to have had an increase in deposit balances during the 2^nd quarter. We are realistically optimistic going forward and wish to again thank our colleagues for their efforts in achieving these results.”

Malaga Bank’s total assets increased by 2% to $1.544 billion at June 30, 2023, compared to $1.519 billion at June 30, 2022. The loan portfolio at June 30, 2023 was $1.296 billion, an increase of $72.7 million or 6% from June 30, 2022. Malaga originates loans principally for its own portfolio and not for sale.

Malaga funds its assets with a mix of retail deposits, wholesale deposits and FHLB borrowings. Retail deposits totaled $830.7 million as of June 30, 2023, a $71.6 million decrease from $902.3 million at June 30, 2022. Wholesale deposits decreased $9.6 million or 6% from $169.2 million at June 30, 2022, to $159.6 million at June 30, 2023. Wholesale deposits were primarily comprised of $108.6 million brokered long-term certificates of deposits and $51.0 million State of California certificates of deposits as of June 30, 2023. FHLB borrowings increased $85.0 million or 34% from $250.0 million at June 30, 2022, to $335.0 million at June 30, 2023. The increase in FHLB borrowings is an interest rate risk management strategy related to the increase in net loan growth.

As of June 30, 2023, Malaga Bank was in compliance with all applicable regulatory capital requirements and was deemed “well-capitalized” under applicable regulations. Core capital and risk-based capital ratios were 13.35% and 24.66%, respectively, at June 30, 2023, significantly exceeding the minimum “well-capitalized” requirements of 5% and 10%, respectively.

Malaga Bank, a subsidiary of Malaga Financial Corporation, is a full-service community bank headquartered on the Palos Verdes Peninsula with six offices located in the South Bay area of Los Angeles. For over fifteen years Malaga Bank has been consistently recommended by one of the nation’s leading independent bank rating and research firms, Bauer Financial Inc. Malaga Bank was awarded Bauer’s premier Top 5-Star rating for the 62nd consecutive quarter as of March 2023. Since 1985 Malaga has been delivering competitive banking services to residents and businesses of the South Bay, including real estate loan products custom-tailored to consumers and investors. As the largest community bank in the South Bay, Malaga is proud of its continuing tradition of relationship-based banking and legendary customer service. The Bank’s web site is located at www.malagabank.com.