Malaga Financial Corporation Reports Earnings for the First Six Months of 2025

Core Viewpoint - Malaga Financial Corporation reported a decrease in net income for the first half of 2025 compared to the same period in 2024, primarily due to the impact of the Employment Retention Credit received in the prior year [1][7] Financial Performance - Net income for the six months ended June 30, 2025, was $10,950,000, down from $11,791,000 in the same period of 2024, reflecting a decrease of $841,000 [1] - For the second quarter of 2025, net income was $5,546,000, a decrease of $233,000 or 4% from $5,779,000 in the second quarter of 2024 [1][2] - The annualized return on average equity for the first six months of 2025 was 10.23%, and the annualized return on average assets was 1.58% [1] Revenue Breakdown - The decrease in earnings for the second quarter of 2025 was attributed to a $191,000 decrease in net interest income, a $92,000 decrease in recovery for provision for loan losses, and a $73,000 increase in nonoperating expenses [2] - Net interest income for the second quarter of 2025 totaled $11,016,000, down $191,000 from the same period in 2024, due to a decrease in average interest-earning assets of $60 million [3] Expense Management - Operating expenses decreased by 1% in the second quarter of 2025 to $3,423,000 from $3,448,000 in the second quarter of 2024, primarily due to a decrease in compensation [5] Asset and Loan Portfolio - Total assets decreased by 2% to $1.397 billion at June 30, 2025, compared to $1.425 billion at June 30, 2024 [7] - The loan portfolio at June 30, 2025, was $1.209 billion, a decrease of $26.9 million or 2% from June 30, 2024 [7] Funding Sources - Retail deposits totaled $718.5 million as of June 30, 2025, a decrease of $22 million from $740.5 million at June 30, 2024 [8] - Wholesale deposits increased by $31.9 million or 18% from $174.6 million at June 30, 2024, to $206.5 million at June 30, 2025 [8] Regulatory Compliance - As of June 30, 2025, the company was in compliance with all applicable regulatory capital requirements, with core capital and risk-based capital ratios at 16.57% and 28.92%, respectively [9]